BlocksInform
Last week it was reported that National Australia Bank (NAB), one of the country’s big four banks, has issued a stablecoin AUDN, which is not yet widely available. A few days later, NAB confirmed a partnership with agritech startup Geora to use blockchain to record sustainable agriculture practices. There is potential for duplication between the two initiatives.
Agricultural partnership in context, The NAB maintains an "Agri Green" loan portfolio, and the blockchain solution is used to check that borrowers are living up to the loan's green commitments.
"Thanks to our stablecoin feature, which may be described as a symbolic repository, the more we use blockchain to check our green assets, a green deposit tokenised offering is definitely in NAB's digital asset product development pipeline," said Howard Silby, NAB's Innovation Leader.
Nab considers itself as an intermediary between investors who seek to use their money for durable solutions, whether it is to invest their money in term deposits or bonds. On the other hand, borrowers are moving to more environmentally friendly business models, like the leather cattle company, which is an easy customer.
The proprietary blockchain of geora ethereum is used to follow green identifiers. Apart from using distributed LEDGER for food traceability, the blockchain startup envisages a future where tokenized agricultural products, agri-assets, are used as loan collateral.
The use of blockchain makes it possible to standardize the production of reports for various loans, which could create a portfolio of green bonds.
Circling back to the NAB stablecoin’s original purpose, the use cases are for cross border remittance, carbon credit trading, and a form of short-term finance in bond markets, which we assume is the reference to ‘repo‘.
The plan for stablishing.
We were curious about the green aspect of the stablecoin and got the following answer by email.
We believe that the components of the future of finance will be enabled by blockchain, as they have the potential to contribute to instant delivery, transparent, and inclusive financial results for clients at a time when our economy is increasingly digitized," wrote Silby.
“As a trusted financial institution, we have a significant role to play in advancing the blockchain industry's maturity. Our focus is very much on looking at use cases where there is high friction and clear customer benefit particularly for larger businesses in our Corporate and Institutional banking client base.”
"This could help provide instant settlement for business customers who perform cross-border remitting activities, or activities such as the trading of carbon credits that many of our customers increasingly want to do.”
We built our own stable on the Ethereum blockchain in December. It is not yet available for wider application. We will soon begin testing our stabilization tool with internal transactions before looking to expand use cases by working closely with our business clients' needs."
