ANZ’s stablecoin used to buy tokenized carbon credits


ANZ’s A$DC stablecoin was 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 AUD 30 million ($20.76 million) between Victor Smorgon Group and the Zerocap digital asset manager.

ANZ’s stablecoin is fully backed by Australian dollars (AUD) held in the segregated account operated by the bank. So far, A$DC transactions have mostly been done through the Ethereum blockchain.

According to a June 27 report According to the Australian Financial Review (AFR), the latest transaction saw long-time institutional partner Victor Smorgon use A$DC to buy 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 called “BCAUs,” which represent one kilogram of carbon offsets per credit.

The transaction also saw the participation of Zerocap, which provided market making services and liquidity by exchanging the A$DC sent by Victor Smorgon into USD Coin (USDC) so that BetaCarbon could agree to the deal. The value of the transaction, however, was not specified.

Regarding the bank’s outlook on the crypto/blockchain sector, ANZ Banking Portfolio Manager Nigel Dobson told AFR that the firm sees blockchain technology as a way to “continue the transition of financial market infrastructure” and was not necessarily interested in speculative crypto assets themselves.

“We’re seeing this evolve from an internet-based protocol to a ‘tokenized’ protocol. We believe that the underlying infrastructure – efficient and secure public blockchains – will facilitate transactions, both those 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 was quick to “immediately ban the word crypto from all of our internal communications and stories” when it began exploring the technology. blockchain a few years ago.

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

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

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

Earlier this month, ANZ ruled out offering any crypto exposure to retail investors due to their lack of financial knowledge.

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

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