ANZ’s Stablecoin Being Used To Buy Tokenized Carbon Credits
Another crucial test of the stablecoin’s possible application in the local economy was the acquisition of Australian tokenized carbon credits using ANZ’s A$DC.
The “Big Four” bank became the first big Australian financial institution to issue its stablecoin after overseeing a test transaction worth 30 million AUD ($20.76 million) between Victor Smorgon Group and digital asset manager Zerocap in March. The only collateral for ANZ’s stablecoin is Australian dollars (AUD) held in the bank’s managed reserving account.
The primary transactional platform for A$DC has been the Ethereum blockchain. According to a June 27 article in the Australian Financial Review (AFR), the most recent transaction saw its longtime institutional partner Victor Smorgon purchase Australian Carbon Credit Units (ACCUs) using A$DC.
ANZ’s stablecoin Carbon trading platform BetaCarbon
A blockchain-based carbon trading platform called BetaCarbon offers digital security assets called “BCAUs”, which are tokenized and assigned carbon credits and represent one kilogram of carbon offsets per credit. In order for BetaCarbon to authorize the trade, Zerocap participated in the transaction by providing market-making services and liquidity by changing the A$DC paid by Victor Smorgon into USD Coin (USDC).
The transaction’s value hasn’t been made explicit, though. Nigel Dobson, the head of ANZ’s banking services portfolio, says the bank has a favourable outlook on the blockchain and cryptocurrency sectors but may not be as interested in speculative crypto assets. The bank views blockchain technology as a means of pursuing the transition of the financial industry infrastructure.
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