ANZ Bank is all in on digital currencies. The Head of Payments at ANZ Institutional Jackie Kallman says, “Digital currencies have an important role to play in the future of transactions, particularly at an institutional level. But the opportunity is much broader than that – it’s a peek at the future of the world’s financial infrastructure.”
“We’re talking about tokenisation,” Ms Kallman told On Air with ANZ Institutional.
Payments are kind of secondary. We must consider the entire spectrum.
“The emergence of tokenisation of assets is really what’s drawing us towards digital currencies.”
ANZ Group
This means digital assets as a payment tool – including stablecoins, such as ANZ’s market-first A$DC – are unlikely to push existing methods entirely out of the market, Kallman says. At least for now
Speaking with Kallman on the podcast, ANZ’s Banking Services Lead Nigel Dobson said the bank saw promise in “tokenisation for our customers … significantly around the institutional customer base.
“The rise of asset tokenization is basically what is pulling us towards this.”
Stablecoins may coexist with other payments on an institutional level
Dobson claims that settling a transaction involving a digital asset through current methods is “expensive, uncertain, and time-consuming [and] precisely why the big stablecoins of the world exist today – to avoid that.”
Also read: ESG Goals of Banks Affected by Poor Data Management
ANZ Digital Currency and The Rise of Tokenisation
The metaverse is one important place where stablecoin transactions might take place.
“People might mistake metaverse as something ‘no one knows what it is, but there are real transactions occuring there already.
The more these virtual worlds develop “the more there will be a demand for a native coin or a native means of settlement, that enables transactions to occur in the virtual world.
Another key area in the future will be tokenised bonds and equities, according to Dobson.
“That would allow us to settle in… almost real time,” Dobson said. However, community involvement is key to grow further.
ANZ is talking to a number of exchanges about tokenised bonds and equities
As demand for tokenisation grows, an increasing number of regulatory bodies are looking into the role they can play. As more central banks look to central bank digital currencies (CBDCs), the implications for payments are vast, according to Kallman.
Also read: NAB Interested in Tokenisation: Chief Digital Officer
Exploring DeFi and Digital Currency, a partner in DFCRC: ANZ Chairman
DFCRC is “Digital Finance CRC”. The initiative brings together stakeholders in Fintech, Industry, R&D and regulation for transformation in financial markets”.
ANZ Chairman Mr Paul O’Sullivan said: “It is not our intention to participate in everything taking place in the DeFi world.
However, we will choose where we can add value and where we can create value for our customers, shareholders and staff.
We have been working across different areas including trade finance, carbon credits and even taxation.
We have the ability to tokenise carbon credits and offer a digital means of settlement, with our A$DC. This is a perfect example of how we can participate”.
Related Articles:
ANZ’s Algorithm Helps Fintel Alliance Combat Money Laundering
Half of Finance AI projects could be in jeopardy as CFOs face scaling challenges
Behavioural Biometrics In Digital Channels Helping To Fight Fraud: ANZ Group
