ANZ Bank Completes Carbon Credit Trading Under Australian CBDC Pilot

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Australia and New Zealand Banking Group Limited (ANZ) has completed the first use case of carbon credit trading under the Australian Central Bank’s (CBDC) digital currency pilot project, the bank announced on Wednesday. headquarters are in Melbourne.

The Australian CBDC pilot, led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Center (DFCRC), began exploring the use cases of a CBDC last year. The DFCRC is an A$180 million (US$124.3 million) program funded by industry partners, universities and the Australian government.

ANZ has partnered with Grollo Carbon Ventures to trade Australian Carbon Credit Units (ACCUs), which are issued by the Australian government’s clean energy regulator.

ANZ and GCV tested real-world ACCUs starting with tokenizing existing ACCUs. ANZ’s own stablecoin (A$DC) was then used to purchase the tokenized ACCUs. Australia’s Pilot CBDC was used as a risk-free asset to back A$DC’s issuance, according to the announcement.

Tokenization of carbon markets can reduce settlement time and partnership risk and incentivize investment in climate solutions.

The RBA has revealed a set of projects to test use cases for its cbdc and its partners for the pilots include Mastercard, Monoova, the Australian Bond Exchange, DigiCash, Commonwealth Bank and others.

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