ACROSS THE WORLD IN 10 SEC: NATIONAL AUSTRALIAN BANK SENDS $10 USING BLOCKCHAIN

Imagine a world where sending money across borders is as quick and easy as sending an email. NAB has completed an intra-bank cross-border transaction using NAB-issued stablecoin, which represents a world-first by a major financial institution on a layer-one public blockchain.No more exorbitant fees, lengthy processing times, or frustrating intermediaries. Australia has carved out an international reputation for blockchain since the technology was first introduced over a decade ago. Minister for Industry, Science and Technology Karen Andrews welcomed the launch of a new report, Blockchain 2025: A look at the future from CSIRO s Data61, in collaboration with the Australian Computer Society, saying blockchain presented an enormous opportunity toThis vision is rapidly becoming a reality, and the National Australia Bank (NAB) is leading the charge. American Express even believes blockchain can solve these problems, and will support real-time domestic and cross-border payments at lower costs versus traditional services. Take a look at these companies using blockchain payment solutions to revolutionize the way we pay and transfer money. 11 Companies Using Blockchain PaymentsIn a groundbreaking move, NAB successfully completed an intra-bank cross-border transaction using its own NAB-issued stablecoin. With the blockchain, users can interact without a middleman, which removes much of the power and profit potential banks currently enjoy in the present financial system. For example, using the blockchain, you can send thousands of dollars to someone across the world in moments without paying a fee to a bank.This wasn't just another test; it was a world-first for a major financial institution to utilize a layer-one public blockchain like Ethereum for such a transaction. Instead of a centralized database, blockchain relies on a network of data blocks that are protected and linked together using cryptography. The rise of blockchain promises to revolutionize many sectors, including cross-border trade logistics and global supply chains: blockchain can help track international shipments more effectively, reduceThe seemingly small sum of AUD$10 represents a monumental leap forward, showcasing the potential of blockchain technology to revolutionize international payments and reshape the future of finance.This innovation isn't just about speed; it's about transparency, security, and accessibility, promising a more inclusive and efficient financial ecosystem for everyone. DeFi transactions occur on a blockchain, and each transaction is recorded, immutable, and available for all to see. But that visibility extends only down to a certain identifier. Because of pseudonymity, the blockchain displays the blockchain address that sent or received assets, but not the identity of the person who controls it.Australia continues to build an international reputation as a leader in Blockchain tech and innovation. The NAB, or National Australian Bank successfully made its first Blockchain transaction of $10 from its home in Australia to Canada.So, how did NAB achieve this feat, and what does it mean for the future of banking and global finance? NAB, the National Australia Bank, announced that it has made history by successfully completing the first-ever cross-border stablecoin transfer using a layer 1 public blockchain. The intrabankLet's dive in.

The Blockchain Breakthrough: NAB's $10 Stablecoin Transfer

The core of this achievement lies in NAB's innovative use of blockchain technology. Regulatory issues deriving from first-generation blockchain i.e. blockchain used to launch cryptocurrencies (in general, public blockchains) are different from those deriving from second-generation blockchain i.e. the adoption of blockchain s distributed ledger technology (DLT) to provide banking services (in general, private blockchains).Specifically, they leveraged the Ethereum blockchain, a well-established and secure platform, to facilitate the cross-border transfer.Instead of relying on traditional, complex banking networks, NAB created its own stablecoin, a digital asset pegged to the value of the Australian dollar (AUDN), to represent the funds being transferred. For example, let s imagine that Tom tries to send $10 of Bitcoin to Ben. Tom only has $5 worth of Bitcoin in his wallet. Because Tom doesn t have the funds to send $10 to Ben, this transaction would not be valid. The transaction will not be added to the ledger. This means that nobody can ever spend the same money twice! This can often be aThis stablecoin allowed for near-instantaneous and transparent movement of value between NAB accounts, even across international borders.

What is a Stablecoin and How Does it Work?

A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar or, in this case, the Australian dollar.This stability makes them ideal for use in transactions and as a store of value within the digital asset ecosystem. blockchain, regulators and industry will have to work in a collaborative manner to ensure they can both experiment and learn, and so shape the future of the technology in a way that benefits all parties and society as a whole. Blockchain has the potential to enhance competitiveness and increase connectivity across markets, increase inclusionHere's how they generally work:

• Pegging: A stablecoin's value is linked to a reserve asset, such as fiat currency, gold, or other cryptocurrencies.
• Collateralization: The issuer of the stablecoin holds reserves equal to the value of the stablecoins in circulation. The banking brigade buoying blockchain keeps on rolling. Using Ripple s ledger technology, the National Australia Bank (NAB), successfully transferred an AUD$10 payment from an employee s account to another banking employee account at the Canadian Imperial Bank of Commerce (CIBC).For example, for every AUDN stablecoin issued by NAB, they would hold an equivalent amount of Australian dollars in reserve.
• Stabilization Mechanisms: These mechanisms are used to maintain the peg to the reserve asset.This can involve algorithmic adjustments to supply and demand or human intervention by the issuer.

In NAB's case, the AUDN stablecoin allows them to represent Australian dollars on the Ethereum blockchain, enabling faster and more efficient cross-border transactions.

How NAB Achieved a 10-Second Transaction

The key to the speed of this transaction lies in the fundamental nature of blockchain technology. National Australia Bank will test foreign exchange transfers using the Ethereum blockchain and its own stablecoin as it moves to offer a digital version of the Australian dollar even before aLet's break down the process and how it enabled NAB to send $10 to Canada so quickly:

1. Stablecoin Issuance: NAB issues AUDN stablecoins, representing the AUD$10 being sent.These stablecoins are backed by an equivalent amount of Australian dollars held in reserve.
2. Transaction Initiation: An employee at NAB in Australia initiates a transaction, sending the AUDN stablecoins to another employee's account at the Canadian Imperial Bank of Commerce (CIBC).
3. Blockchain Verification: The transaction is broadcast to the Ethereum blockchain network.Nodes on the network verify the transaction's validity, ensuring the sender has sufficient funds and the transaction is legitimate.
4. Block Confirmation: Once verified, the transaction is added to a block, which is then added to the blockchain.This process is typically very fast, often taking only a few seconds or minutes.
5. Recipient Confirmation: The recipient at CIBC receives the AUDN stablecoins in their digital wallet.They can then choose to convert these stablecoins back into Canadian dollars or use them for other purposes within the digital asset ecosystem.

The entire process, from initiation to confirmation, took approximately 10 seconds, a fraction of the time required for traditional cross-border payments.

The Power of Decentralization: Cutting Out the Middleman

One of the most significant advantages of using blockchain for cross-border payments is the elimination of intermediaries. Blockchain Australia is the peak blockchain industry body. Blockchain Australia encourages and advocates for the adoption of blockchain technology by industry and governments as a means to drive innovation in service delivery across all sectors of the economyTraditional international money transfers often involve multiple banks and payment processors, each adding fees and delays. Authorising a payment using the blockchain is similar to using a credit card to buy something online. Instead of a 16-digit credit card number, you provide the vendor with a unique string ofWith blockchain, transactions can occur directly between parties, reducing costs and increasing efficiency.

Imagine Tom wants to send $10 of Bitcoin to Ben, but Tom only has $5. Blockchain firms raised more than $240m of venture capital money in the first six months of 2025, much of it from banks, including $107m raised by R3, the New York firm owned by 40 of the world'sBecause Tom doesn’t have the funds to send $10 to Ben, this transaction would not be valid, so the transaction will not be added to the ledger.This shows how nobody can ever spend the same money twice!

Here's a breakdown of the benefits of decentralization:

• Reduced Fees: By eliminating intermediaries, transaction fees are significantly lower.
• Faster Processing Times: Transactions are processed much faster, often in seconds or minutes, compared to days for traditional methods.
• Increased Transparency: All transactions are recorded on the blockchain, providing a transparent and auditable record.
• Enhanced Security: Blockchain's cryptographic security makes transactions more secure and resistant to fraud.

Australia's Blockchain Ecosystem: Leading the Way

Australia has emerged as a prominent player in the global blockchain landscape. National Australia Bank has completed an intra-bank, cross-border transaction using NAB-issued stablecoins. This represents a world-first by a major financial institution on a layer-one public blockchain (Ethereum).The government and industry have recognized the transformative potential of this technology and are actively investing in its development and adoption. The World Bank launched bond-i in 2025 as the world's first global bond using distributed ledger technology, arranged by the Commonwealth Bank of Australia. In October 2025, the World Bank becameAustralia has carved out an international reputation for blockchain since the technology was first introduced over a decade ago.

Government Support for Blockchain Innovation

The Australian government has been actively supporting blockchain innovation through various initiatives, including:

• Funding for Blockchain Projects: The government has allocated funds to support blockchain research and development, as evidenced by previous investment by the Liberal National Government in blockchain technology, including $700,000 to the Digital Transformation Agency to investigate the benefits of using blockchain for government payments.
• Development of Standards: Supporting Standards Australia to lead the development of international blockchain standards through the International.
• Regulatory Frameworks: Working on developing clear and appropriate regulatory frameworks to foster innovation while protecting consumers.

Industry Adoption and Growth

The Australian blockchain industry is thriving, with a growing number of companies developing innovative solutions across various sectors, from finance and supply chain to healthcare and government. National Australia Bank (NAB) made a significant breakthrough last week in the banking sector by completing the first intra-bank cross-border transaction on the Ethereum blockchain using its own stablecoin. This event is historic, as it marks a major milestone for NAB as the largest bank in Australia to break the blockchain barrier.Blockchain firms raised more than $240m of venture capital money in the first six months of 2025.Blockchain Australia, the peak blockchain industry body, encourages and advocates for the adoption of blockchain technology by industry and governments as a means to drive innovation in service delivery across all sectors of the economy.

The Implications for the Future of Banking

NAB's successful cross-border stablecoin transfer represents a significant step towards the future of banking. National Australia Bank became the second a year later with its AUDN stablecoin on Ethereum. Related: Don t follow the US: Blockchain Aus CEO hammers regulation by enforcementIt demonstrates the potential of blockchain to transform traditional financial systems, making them more efficient, accessible, and transparent. Previous investment by the Liberal National Government in blockchain technology includes $700,000 to the Digital Transformation Agency in 2025 19 to investigate the benefits of using blockchain for government payments, and $350,000 to Standards Australia to lead the development of international blockchain standards through the InternationalHere are some key implications:

• Faster and Cheaper Cross-Border Payments: Blockchain can significantly reduce the time and cost of international money transfers, benefiting individuals and businesses alike.
• Increased Financial Inclusion: Blockchain can provide access to financial services for the unbanked and underbanked populations around the world.
• Improved Transparency and Security: Blockchain's transparent and secure nature can reduce fraud and increase trust in the financial system.
• New Business Models: Blockchain can enable new business models, such as decentralized finance (DeFi) and peer-to-peer lending.

Addressing the Regulatory Landscape

As blockchain technology continues to evolve, it's crucial to address the regulatory challenges it presents.Regulators need to strike a balance between fostering innovation and protecting consumers and the financial system.Regulatory issues deriving from first-generation blockchain i.e. blockchain used to launch cryptocurrencies (in general, public blockchains) are different from those deriving from second-generation blockchain i.e. the adoption of blockchain’s distributed ledger technology (DLT) to provide banking services (in general, private blockchains).This is the approach regulators should consider when establishing rules for this technology.

Key Regulatory Considerations

• Anti-Money Laundering (AML) and Know Your Customer (KYC) Regulations: Ensuring compliance with AML and KYC regulations is essential to prevent the use of blockchain for illicit activities.
• Consumer Protection: Protecting consumers from fraud and other risks associated with digital assets is a top priority.
• Data Privacy: Addressing data privacy concerns related to the storage and use of personal information on the blockchain is crucial.Because of pseudonymity, the blockchain displays the blockchain address that sent or received assets, but not the identity of the person who controls it.
• Taxation: Developing clear and consistent tax policies for digital assets is necessary to ensure fair and efficient taxation.

Collaboration between regulators, industry players, and technology experts is essential to develop effective and balanced regulatory frameworks.

Beyond Payments: Blockchain's Broader Applications

While NAB's $10 stablecoin transfer focused on payments, blockchain technology has a wide range of potential applications beyond finance.Its ability to create secure, transparent, and immutable records makes it suitable for various industries.

Supply Chain Management

Blockchain can enhance competitiveness and increase connectivity across markets, increasing inclusion.Blockchain can help track international shipments more effectively, reduce fraud and improve efficiency.

Healthcare

Blockchain can be used to securely store and share medical records, improving data privacy and interoperability.

Voting Systems

Blockchain can create more secure and transparent voting systems, reducing the risk of fraud and manipulation.

Digital Identity

Blockchain can provide individuals with greater control over their digital identities, enhancing privacy and security.

Real-World Examples of Blockchain in Action

Numerous companies are already leveraging blockchain technology to revolutionize various industries.Here are a few examples:

• R3: A New York firm owned by 40 of the world's largest banks is developing blockchain solutions for the financial industry.
• American Express: Believes blockchain can solve these problems, and will support real-time domestic and cross-border payments at lower costs versus traditional services.
• World Bank: Launched bond-i as the world's first global bond using distributed ledger technology, arranged by the Commonwealth Bank of Australia.

Common Questions About Blockchain and Banking

Is blockchain secure for financial transactions?

Yes, blockchain is generally considered very secure for financial transactions.Its cryptographic security makes it resistant to fraud and manipulation.Authorising a payment using the blockchain is similar to using a credit card to buy something online.Instead of a 16-digit credit card number, you provide the vendor with a unique string of numbers.

Will blockchain replace traditional banking systems?

It's unlikely that blockchain will completely replace traditional banking systems in the near future.However, it's likely to coexist with and complement existing systems, enabling new and innovative financial services.

What are the risks associated with using blockchain for financial transactions?

Some potential risks include regulatory uncertainty, security vulnerabilities (although rare), and price volatility (especially with cryptocurrencies).However, stablecoins like AUDN aim to mitigate the price volatility risk.

How can I learn more about blockchain technology?

There are many resources available online, including articles, courses, and tutorials.You can also explore blockchain communities and attend industry events to learn from experts.

Conclusion: A Glimpse into the Future of Finance

NAB's successful intra-bank cross-border transaction, sending $10 using blockchain, is more than just a technical achievement; it's a glimpse into the future of finance.It demonstrates the transformative potential of blockchain to make cross-border payments faster, cheaper, more transparent, and more accessible.While regulatory challenges and security considerations remain, the benefits of blockchain are undeniable.As Australia continues to foster innovation and collaboration within its blockchain ecosystem, we can expect to see even more groundbreaking advancements in the years to come.The key takeaways are: Blockchain can significantly improve cross-border payments, Australia is a leader in blockchain innovation, and collaboration is crucial for responsible development. The future of finance is being built on blockchain, and NAB's achievement is a significant step in that direction.Are you ready to embrace the change?Keep an eye on this space, as the banking brigade buoying blockchain keeps on rolling!