The Victor Smorgon Group used the cryptocurrency A$DC from ANZ Banking Group to buy tokenized Australian carbon credits (BCAU).
In order to provide more price stability than independent cryptocurrencies like Bitcoin, A$DC is a stablecoin, a type of cryptocurrency linked to a good or currency.
Through Zerocap, a private wealth management company for digital assets, the major bank made its first Australian stablecoin transaction utilising A$DC for Victor Smorgon Group in March of this year.
Victor Smorgon Group utilised A$DC to buy BCAU, tokenized Australian Carbon Credit Units (ACCUs), from Zerocap as part of its second cryptocurrency transaction with the bank.
BetaCarbon, which tokenizes the ACCUs into digital tokens with each representing one kilogramme of carbon collected, was the source of the BCAU for Zerocap.
The bank described the transaction as “an significant step” in its efforts to increase stablecoin circulation.
Nigel Dobson, head of ANZ Banking Services, said the “milestone” agreement brought together strategic objectives for the bank.
“This historic deal combines ANZ’s sustainability and digital assets emphasis areas, “Dobson remarked.
We’re noticing that customers are getting more eager to use A$DC to enter the digital economy, and we’ll keep working with our clients to find out how this technology may help them realise their objectives.
Stablecoins were praised by Dobson in March as “clients to transact in a new way, and the bank is “eager to continue to experiment our capability.”
Along with CBA, Westpac, ANZ, Scentre Group, and IBM, ANZ was also the guarantee issuer for the first digital banking guarantee on the Lygon blockchain technology.
