ANZ becomes first Australian bank to mint stablecoins

A pedestrian is reflected in the window of a branch of the Australian and New Zealand Banking Group (ANZ) in central Sydney, Australia, October 25, 2017. REUTERS/Steven Saphore

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March 24 (Reuters) – Australian and New Zealand Banking Group (ANZ.AX) said on Thursday it had made payment in Australian dollars, in a landmark deal to become the first Australian lender to mint a linked digital asset to the country’s currency.

A stablecoin is a kind of digital asset designed to hold its value stable against another asset, and is frequently used as a gateway to other cryptocurrencies or to generate income in decentralized financial systems.

ANZ said it 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.

The company’s move to mint Australian dollar-linked digital assets comes after the Reserve Bank of Australia (RBA) said last year that the growth of digital wallets could enable the exchange of tokens or forms of money. that could be backed by the RBA, even as the central bank remains skeptical of digital currency. Read more

ANZ, the country’s third-largest lender, said it minted A$30 million using a smart contract and the coins were transferred between the parties and then redeemed in Fiat currency.

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Reporting by Riya Sharma; Editing by Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.

Shawanda H. Saldana