ANZ’s stablecoin used to buy tokenized carbon credits

Please fol­low and like us:
Pin Share

ANZ’s sta­ble­coin A$DC has been used to buy Aus­tralian tok­enized car­bon cred­its, mark­ing anoth­er crit­i­cal test of the asset’s use cas­es in the local economy. 

In March, the “Big Four” bank became the first major Aus­tralian finan­cial insti­tu­tion to mint its own sta­ble­coin after over­see­ing a pilot trans­ac­tion worth 30 mil­lion AUD ($20.76 mil­lion) between Vic­tor Smor­gon Group and dig­i­tal asset man­ag­er Zerocap. 

ANZ’s sta­ble­coin is ful­ly col­lat­er­al­ized by Aus­tralian dol­lars (AUD) held in the bank’s man­aged reserved account. So far, A$DC trans­ac­tions have pri­mar­i­ly been con­duct­ed over the Ethereum blockchain. 

Accord­ing to a June 27 report from the Aus­tralian Finan­cial Review (AFR), the lat­est trans­ac­tion saw its long-time insti­tu­tion­al part­ner Vic­tor Smor­gon use A$DC to pur­chase Aus­tralian Car­bon Cred­it Units (ACCUs).

The car­bon cred­its were tok­enized and pro­vid­ed by BetaCar­bon, a blockchain-based car­bon trad­ing plat­form that issues dig­i­tal secu­ri­ty assets dubbed “BCAUs,” which rep­re­sent one kilo­gram of car­bon off­sets per credit. 

The trans­ac­tion also saw par­tic­i­pa­tion from Zero­cap again, who pro­vid­ed mar­ket-mak­ing ser­vices and liq­uid­i­ty by exchang­ing the A$DC sent from Vic­tor Smor­gon into USD Coin (USDC) so that BetaCar­bon could accept the deal. The val­ue of the trans­ac­tion has not been spec­i­fied, however. 

In terms of the bank’s out­look on the crypto/blockchain sec­tor, ANZ’s bank­ing ser­vices port­fo­lio lead Nigel Dob­son told the AFR that the firm is look­ing at blockchain tech as a means of “pur­su­ing the tran­si­tion of finan­cial mar­ket infra­struc­ture” and is not nec­es­sar­i­ly inter­est­ed in spec­u­la­tive cryp­to assets themselves. 

“We see this is evolv­ing from being inter­net-pro­to­col based to one of ‘tok­enized’ pro­to­cols. We think the under­ly­ing infra­struc­ture – effi­cient, secure, pub­lic blockchains – will facil­i­tate trans­ac­tions, both ones we under­stand today and new ones that will be more efficient.”

Dob­son echoed sim­i­lar sen­ti­ments at the Chainal­y­sis Links event in Syd­ney on June 21, not­ing that ANZ prompt­ly “banned the word cryp­to imme­di­ate­ly in all of our inter­nal com­mu­ni­ca­tions and nar­ra­tive” when it start­ed explor­ing blockchain tech a few years ago. 

He went on to add that the bank has explored mul­ti­ple use cas­es for blockchain tech, such as sup­ply chain track­ing and pro­vid­ing on-ramps via sta­ble­coins for insti­tu­tions to invest in dig­i­tal assets. How­ev­er, Dob­son sug­gest­ed that tok­enized car­bon cred­its were a key area that the bank has been gear­ing up for: 

“Anoth­er area where we have a strong posi­tion in terms of sus­tain­abil­i­ty is where we feel the tok­eniza­tion of car­bon cred­its and mar­ket­places dri­ven by tok­enized assets and tok­enized val­ue exchange will be real­ly efficient.”

Relat­ed: BTC Mar­kets becomes first Aus­tralian cryp­to firm to get a finan­cial ser­vices license

At the start of this month, ANZ ruled out offer­ing any cryp­to expo­sure to retail investors due to their lack of finan­cial literacy. 

Maile Carnegie, an exec­u­tive for retail bank­ing, not­ed at the Aus­tralian Finan­cial Review Bank­ing Sum­mit that “the vast major­i­ty of them don’t under­stand real­ly basic finan­cial well-being concepts.”

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.