National Australia Bank (NAB) is set to become the 2nd “Big 4” Australian bank to introduce an Australian dollar-pegged stablecoin on the Ethereum network.Set to launch

sometime in mid-2023, the AUDN stablecoin is focused on streamlining cross-border remittances and carbon credit trading, according to a Jan. 18 report from the Australian Financial Review (AFR).

NAB’s chief development officer Howard Silby said the choice to mint the AUDN stablecoin on Ethereum– which is backed 1:1 by the Australian dollar (AUD)– was based upon their belief that blockchain facilities will play a key function in the next development of financing:

We definitely believe there are elements of blockchain technology that will form part of the future of finance […] From our point of view, we see [blockchain] has the potential to deliver rapid, transparent, inclusive, financial results.”

The implementation of AUDN for real-time, cross-border remittances could become a way for customers to sidestep the slower and more pricey SWIFT payment network.Carbon credit trading and

other types of tokenzied real-world assets will also be a significant usage case for the AUDN, Silby said. He also added that they’re preparing to provide stablecoins in “multiple currencies”where the bank has licenses. NAB’s announcement of the AUDN comes 9 months after competing bank Australia and New Zealand Banking Group(ANZ) released 30 million tokens of its own stablecoin tickered A$ DC in March 2022, which is also used for worldwide remittances and carbon trading. Prior to ANZ and NAB’s stablecoin tasks, the two banks at first planned on partnering with the other 2″Big 4 “Australian banks– Commonwealth Bank of Australia(CBA)and Westpac– to co-launch a nationwide stablecoin backed by the AUD.However, it failed due to competitors concerns and the banks being at various phases in their adoption and method, the AFR explained. NAB, among the “Big 4″banks in Australia, is set to roll out its own stablecoin in mid-2023. Source: PYMNTS.Jonathon Miller, Australia’s managing director of crypto exchange Kraken Australia told Pandoraland that banks are beginning to acknowledge the technical benefits that blockchain facilities uses

over conventional legacy systems:” The persistent adoption of crypto technology by financial institutions like ANZ and now NAB for its possible to develop substantial performances in the financial system […] is an explicit recognition of [

blockchain’s] competitive advantage over traditional payment systems.””We expect this trend to continue, inevitably developing to include the adoption of various other cryptocurrencies and tokens for increasing use cases in the Australian economy

,”he added.Related: Stablecoin structure is a near-term priority for Aussie regulators It also remains to be seen how these personal bank-issued stablecoins would operate in tandem with the Reserve Bank of Australia’s eAUD– a central bank digital currency (CBDC)– which is presently in its pilot stage. Nevertheless, NAB is positive the 2 will have the ability to run all at once and have their own set of unique use cases.