ANZ bank becomes the first Australian bank to mint AUD pegged stablecoin A$DC

ANZ has minted an Australian dollar (AUD) pegged stablecoin called “A$DC,” becoming the first Australian bank to do so.
ANZ has minted an Australian dollar (AUD) pegged stablecoin called “A$DC,” becoming the first Australian bank to do so.

The renowned Australia and New Zealand Banking Group or ANZ has minted an Australian dollar (AUD) pegged stablecoin called “A$DC,” becoming the first Australian bank to do so. However, the competitor bank NAB also has revealed its plans on bringing its own stablecoin project which is expected to roll out by the end of 2022.

ANZ is working with multiple local regulators including AUSTRAC and APRA to get the program approved in a standardized manner and already has completed a test transaction on the Ethereum network with its institutional partner Victor Smorgon Group, the family office tied to the billionaire Smorgon family.

The stablecoin will begin its journey from getting pushed out to corporate customers who seek a cost-effective on-ramp for crypto investments, according to a March 24 article from the Australian Financial Review (AFR). Soon after that, the bank expects to open the project to the civilian trading market in the near future as well.

Victor Smorgon sent A$DC worth $22 million (A$30 million) to Zerocap, an Australian digital asset fund manager that has teamed up with ANZ to provide critical infrastructure and advisory services.

The infrastructure was provided by Fireblocks, a worldwide digital asset custodian, and the smart contracts were audited by OpenZepplin. Chainalysis has agreed to help with regulatory and compliance requirements.

The booming Australian banking sector

The Australian banking sector is known for liberal thinking when it comes to the crypto industry. In December, the Reserve Bank of Australia published “Project Atom” CBDC research study.

Before that in November, the Commonwealth Bank of Australia started a crypto trading service for its customers. Later it also said that missing out on crypto is riskier than investing in them.

The world is waiting for the six world-leading crypto reforms that Australia promised last year. The country had backed multiple forward-looking regulatory proposals called “payment and crypto reform plan.”