- Home
- Cryptocurrency
- News
- ANZ mints first stablecoin pegged to the Australian Dollar
ANZ mints first stablecoin pegged to the Australian Dollar
Big four bank, ANZ, has made history today by creating the first stablecoin pegged to the Australian dollar, encouraging its customers to support cryptocurrencies.
ANZ is the first Australian bank to mint a digital asset linked to the value of the AUD, the A$DC. And it’s already been used in a real transaction, allowing Victor Smorgon Group to send $30 million to a digital asset fund manager, Zerocap, within 10 minutes. Typically, this transaction would take several days.
According to ANZ, it was able to mint 30 million worth of A$DC using an ANZ built Ethereum Virtual Machine compatible smart contract deployed through the Fireblocks platform. These coins were transferred between the parties and later redeemed back into Fiat currency.
ANZ Banking Services Lead Nigel Dobson said: “An ANZ issued Australian dollar stablecoin is a first and important step in enabling our customers to find a safe and secure gateway to the digital economy.”
“Stablecoins are a new way for customers to transact and in this case was an efficient and direct way for Victor Smorgon Group to access Zerocap’s digital asset exchange and move funds across a decentralised network.”
“We’re excited to continue to trial our capability and explore how this use case can be applied in other industries and customers in the future,” said Mr Dobson.
ANZ worked closely with leading providers in the digital asset domain including Fireblocks, Chainalysis and OpenZeppelin to create an ‘in-house purpose-built stablecoin smart contract’.
Fireblocks CEO Michael Shaulov said: "The financial sector is undergoing rapid transformation and we are enabling institutions with end-to-end technology for plugging into tokenisation, DeFi, staking and crypto trading.”
“By being the first bank to mint a stablecoin, ANZ has established itself as a leader when it comes to innovation and we look forward to welcoming other institutions who are on the same path,” said Mr Shaulov.
It’s likely that other major banks will follow suit in developing their own forms of stablecoins or other cryptocurrencies.
What is a stablecoin?
Cryptocurrencies like Bitcoin can struggle with high volatility in their valuations. During January 2018 – June 2019, the price of Bitcoin moved around 2.67% a day, with daily price swings as high as 16% on the upside, and over 18% on the downside. This volatility is six times higher than that of Fiat currencies, like the Australian dollar.
A stablecoin is a cryptocurrency in which the priced is pegged to an external reference to help provide more price stability. It may be connected to exchange-traded commodities, such as gold, or to a currency. In this instance, the A$DC is pegged to the Australian dollar.
Popular types of stablecoins can include:
- Fiat-collateralised stablecoins – pegged to a Fiat currency, such as the U.S. dollar or the Australian dollar.
- Crypto-collateralised stablecoins – backed by other cryptocurrencies
- Non-collateralised (algorithmic) stablecoins – rely on a working mechanism like a central bank would to retain a stable price.
They may be an appealing “best of both words” crypto option for some investors, as it may offer the privacy of cryptocurrencies with the stable valuation of Fiat currencies.
Disclaimer
This article is over two years old, last updated on March 24, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent cryptocurrency articles.
Compare cryptocurrency exchanges
Swyftx
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD, NZD
Trading Fee: 0.6%-0% based on a rolling 30 day's trading volume
Withdrawal Fee: $0 for AUD/ Deposit's withdrawals. Network transaction fees apply while transferring coins to an external wallet
Deposit Fees: No POLi fees. No fees on cryptocurrency and PayID deposits. Credit/Debit card deposits supported (5% fee)
An Australian owned and operated digital currency exchange that allows users to sell, trade and buy Bitcoin, and over 245+ other digital assets, with low trading fees and one of the smallest spreads available.
CoinJar
Cryptocurrencies available: 57
Fiat Currencies Accepted: AUD, GBP
Trading Fee: 0%-1%
Withdrawal Fee: No fee for AUD or GBP withdrawals. Cryptocurrency withdrawal fees are based on blockchain network fees
Deposit Fees: No fees with PayID; 2% fee with credit / debit card, Apple Pay, and Google Pay
Australia's longest-running cryptocurrency exchange with over 500,000 Australian customers and a simple to use app for both iOS and Android.
Digital Surge
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD
Trading Fee: 0.1%-0.5% based on a rolling 30 day trading volume.
Withdrawal Fee: None for Australian bank accounts - Instant withdrawals through Osko/PayID.
Deposit Fees: No fees for Osko/PayID, Direct Deposit, Bank Transfers or cryptocurrency. POLi fees range from $2-$3.30.
Because simplicity makes life better. The easiest way for Australians to buy, sell & store over 245+ cryptocurrencies. Low fees, tight spreads, Aussie-based customer support & an interface that makes crypto enjoyable & easy-to-understand. Simple. Safe. Stress-free.
CoinSpot
Cryptocurrencies available: 263
Fiat Currencies Accepted: AUD
Trading Fee: 0.1% to 1% based on order type
Withdrawal Fee: None for Australian Bank Accounts
Deposit Fees: No fees for POLi, PayID, Direct Deposit and Bank Transfers. 0.9% BPAY fee, 2.5% cash fee
Australia’s most trusted exchange since 2013.
Cointree
Cryptocurrencies available: 280+
Fiat Currencies Accepted: AUD
Trading Fee: 0.05%-0.9%
Withdrawal Fee: No fee with fiat withdrawals. Cryptocurrency withdrawal fees vary.
Deposit Fees: No fee
Buy, sell, trade and pay with crypto. Simple, low fees, easy to use and trusted by 100,000+ members. Enjoy $10 BTC credit after verification with promo code: RATE10
This information does not reflect any ranking, rating, recommendation or endorsement by RateCity of cryptocurrency or any specific provider. RateCity is providing factual information supplied by providers. Not all providers or products are shown. RateCity will earn a fee from the providers displayed in the table (if a link to the provider's website is shown), and the fee levels determine placement in the table. Cryptocurrencies are speculative, complex and can involve significant risks. RateCity is not providing a recommendation for your individual circumstances.
Product database updated 25 Apr, 2024
Share this page
Get updates on the latest financial news and products
By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.
