The S&P/ASX 200 Index (ASX: XJO) big four bank has created a brand new stablecoin, dubbed the AUDN.
Let's take a closer look at the high-tech currency born from the 41-year-old financial institution.
The NAB share price was trading at $31.77 at the market close, 0.30% higher than its previous close. For comparison, the ASX 200 lifted 0.57% at the close of trade.
NAB reveals AUD-linked cryptocurrency
If you own NAB shares, congratulations may be in order. The bank has revealed a stablecoin – a form of cryptocurrency tied to a fiat currency. In this case, NAB's AUDN is tied to the Aussie dollar.
The bank created AUDN on the Ethereum blockchain in December. It will soon begin testing its use with internal transactions before expanding to other use cases, for which it will work closely with its corporate clients.
NAB executive of innovation and partnerships Howard Silby commented on the stablecoin's creation, saying:
We believe that elements of the future of finance will be blockchain enabled because it has the potential to help deliver instantaneous, transparent, and inclusive financial outcomes for customers as our economy becomes increasingly digitised.
As a trusted financial institution we have an important role to play in advancing the maturity of the blockchain enabled sector.
Silby said the bank aimed to use AUDN in cases with "high friction and clear customer benefit". It imagines AUDN could be used to send money internationally or trade in carbon credits, for instance.
In particular, its attention will be drawn to the benefits of the coin in the corporate and institutional banking sector.
The smallest of the lot created and transacted with its A$DC in March 2022.
NAB share price snapshot
The NAB share price has been outperforming the broader ASX 200 recently.
The stock has gained 7.9% year to date. Meanwhile, the index has lifted 7%.
Looking further back, the NAB share price has risen 9% over the last 12 months, while the ASX 200 has improved just over 1%.