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ANZ Utilises Chainlink Protocol for Native Stablecoin

ANZ Partners with Chainlink for Blockchain Innovation

ANZ, a leading Australian bank, is making strides in the exploration of tokenized assets, recently completing a successful trial transaction in partnership with the Web3 services platform, Chainlink.

ANZ logo with Chainlink logo

In a statement dated September 13, Nigel Dobson, ANZ’s banking services portfolio lead, provided details about the test transaction. It centered around the technical integration of the bank’s digital asset services technology stack with Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

CCIP enables seamless data and value transfers between different public or private blockchain networks. Operational since July, the protocol initially supported users on blockchains like Avalanche (AVAX), Ethereum (ETH), Optimism (OP), and Polygon (MATIC).

Dobson stated, “ANZ recently collaborated with Chainlink CCIP to conduct a test transaction simulating the purchase of a tokenized asset, facilitated using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin.”

The bank has actively experimented across various networks to determine the most suitable application for its Australian dollar stablecoin, A$DC:

“We’re actively exploring the use of decentralized networks through a ‘test-and-learn’ approach,” said Dobson.

ANZ recognizes the potential value in tokenizing real-world assets like the Australian dollar, seeing it as a transformative development for the banking sector:

“Tokenized assets are already changing the way banking works, and the technology has the potential to do more — if the right pieces can come together.”

In March 2022, ANZ became the first Australian bank to create the A$DC stablecoin. Following suit, National Australia Bank introduced its AUDN stablecoin on the Ethereum network a year later.

In June, ANZ used its A$DC stablecoin to acquire digital representations of Australian carbon credits in a transaction involving private investor Victor Smorgon Group.

Dobson mentioned that previous transactions with the native stablecoin provided valuable insights, motivating the bank to explore additional use cases. He commented, “based on market activity, we expect the continued adoption of digital assets will result in the proliferation of multiple assets across many blockchain networks.”

The ongoing collaboration with Chainlink is considered a significant achievement for ANZ, expressing interest in engaging in further initiatives within the broader industry.

“While the technology solutions are still emerging, this collaboration is another important milestone for ANZ – showing the feasibility of technical interoperability, which can serve as a basis for further work on customer-led transactions.”

Recently, NAB, along with banks such as Commonwealth Bank of Australia, Westpac, and Bendigo Bank, has imposed limitations, and in some cases, complete prohibitions on transferring funds to specific “high-risk” cryptocurrency platforms.

These measures have been justified by these banks with an emphasis on safeguarding customers from potential cryptocurrency-related fraudulent activities.

Moreover, Senator Andrew Bragg’s Digital Assets (Market Regulation) Bill was recently recommended against, with concerns raised about exposing Australian investors to further risks in unregulated markets if the bill is rejected.

The regulatory landscape for the Australian cryptocurrency market continues to evolve, presenting interesting times for the industry.

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