ANZ has announced the successful execution of a landmark transaction involving the first Australian-bank issued Australian dollar stablecoin, A$DC. This transaction was conducted on a public permissionless blockchain, marking a significant step in the digital finance sector. The stablecoin was delivered to Victor Smorgon Group through Zerocap, a private wealth management firm specializing in digital assets.
A stablecoin is a type of cryptocurrency with its value linked to commodities, currencies, or algorithms that manage supply. ANZ minted 30 million A$DC using an Ethereum Virtual Machine compatible smart contract developed by ANZ and deployed via the Fireblocks platform. These coins were transferred between parties and later converted back into fiat currency.
Nigel Dobson, ANZ Banking Services Lead, remarked: “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."
Dobson further explained that this new form of transaction allowed Victor Smorgon Group efficient access to Zerocap’s digital asset exchange and facilitated fund transfers across decentralized networks. He expressed excitement about continuing trials of this capability for potential application in other industries.
Victor Smorgon Group CEO Peter Edwards commented on their longstanding relationship with ANZ Bank: "Through the Zerocap platform and continuing our multi-generational working relationship with the ANZ Bank, we are excited to have an Australian dollar stablecoin facilitating innovation and investment."
Ryan McCall, co-founder and CEO of Zerocap, highlighted the importance of understanding institutional needs like those of ANZ in this initiative. He noted that while much of the crypto industry targets retail markets directly, Zerocap has focused on building products and technology for private and institutional clients.
ANZ collaborated with various providers in creating their purpose-built stablecoin smart contract. Fireblocks CEO Michael Shaulov stated: "The financial sector is undergoing rapid transformation... By being the first bank to mint a stablecoin, ANZ has established itself as a leader when it comes to innovation.”
The infrastructure supporting this initiative was designed following industry best practices for secure custody of digital assets, smart contract auditing, transaction screening, and monitoring. ANZ's engagement with blockchain solutions includes being a founding partner of Lygon for streamlining bank guarantees using blockchain technology.