This morning, the National Australia Bank (NAB) said it completed an intra-bank cross-border transaction using its self-issued stablecoins, claiming to be the first financial institution to achieve this on a layer-one public blockchain. It plans to roll out a solution for some corporate and institutional clients by the end of 2023.
NAB executed the pilot transaction on the public, permissionless Ethereum blockchain, deploying stablecoin smart contracts for seven major international currencies. The benefit is the time reduction to conduct cross-border transactions. That said, Ethereum is not the most cost effective for small transactions, and many are looking to layer 2 solutions for cost savings.
The trial was executed with blockchain tokenization firm Blockfold and custody tech firm Fireblocks, who helped build the smart contracts, securely mint the stablecoin, and manage the direct custody of the digital asset on the public blockchain.
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