On Thursday, in a landmark development that sees the first ever transaction of an Australian lender to mint a digital asset linked to its currency, the Australia and New Zealand Banking Group said, it has carried out an Australian dollar stablecoin payment.
A stablecoin is a digital asset that is devised to keep its value stable in relation to another asset, and are frequently used as a portal to other cryptocurrencies or to generate income in decentralised financial systems.
ANZ said, it has “delivered the Australian dollar stablecoin, which it calls A$DC, to a private wealth management firm for digital assets – Victor Smorgon Group – through digital asset investment platform Zerocap”.
Its move to mint digital assets linked to the Australian dollar comes in the wake of the Reserve Bank of Australia (RBA) issuing a statement last year saying the growth of digital wallets could allow the exchange of tokens or digital forms of money that could be backed by the RBA.
In a statement ANZ said, it has minted 30 million of A$DC using a smart contract and the coins were transferred between the parties and later redeemed back into Fiat currency.