ANZ Bank has launched a stable coin pegged to the Australian dollar in order to reduce the risk associated with buying digital assets and encourage more customers to use them.
ANZ Bank has developed its own stablecoin
This is the first time a major Australian bank has issued a stablecoin that is tied to the value of the Australian dollar, and it’s also the first time such a large financier has issued a stablecoin that has been used in a real-life transaction.
The stablecoin, known as A$DC, was donated to the Victor Smorgon Group, a private asset management firm specializing in digital assets, via digital asset fund manager Zerocap.
A$DC was used in the transaction, allowing VSG to send $30 million to Zerocap in less than 10 minutes. Such transactions usually take several days. Everything took place through the Fireblock platform and the Ethereum Virtual Machine (EVM) compatible contract developed by ANZ smart. The parties exchanged coins, and these were then converted into fiat currency.
Founded in 2012, Zerocap operates at the intersection of cryptocurrency and traditional finance, providing products and services to investors and institutions worldwide.
The company’s decision to issue the stablecoin follows a 2021 announcement by the Reserve Bank of Australia.
Nigel Dobson, head of ANZ Banking Services, said the project “is the first critical step towards enabling our customers to access the digital economy in a secure way.”
ANZ has worked extensively with prominent digital asset providers such as Chainalysis, Fireblocks and OpenZeppelin to develop an internal smart contract for the stablecoin.
This is the beginning of a revolution
The CEO of Fireblocks, Michael Shaulov, stated that “the financial sector is undergoing a tremendous transformation, and we enable institutions to benefit from tokenization, DeFi, staking, and cryptocurrency trading with end-to-end technology.”
Other large banks are likely to follow suit and create their own stablecoins or similar projects.
ANZ has successfully implemented blockchain-based solutions and is a founding partner of Lygon, a company that uses blockchains in its financial processes.