Global fintech CANVAS, today announced a significant milestone in moving towards usable electronic currencies on a global basis, with the first Foreign Exchange transaction using an Australian CBDC.
The trade was conducted as part of the Reserve Bank of Australia’s (RBA) and Digital Finance Cooperative Research Centre (DFCRC) CBDC pilot. CANVAS is a global financial technology company with a mission to digitize finance and was selected to test FX transactions and International remittances with the RBA’s CBDC - the eAUD.
The first transaction was successfully completed between ASX listed DigitalX (ASX:DCC), and Fund Manager TAF Capital, to trade eAUD against USDC stable coin on Wednesday 17th May.
Today’s transactions were settled atomically (instantaneously) and demonstrated the benefits that CBDC’s can bring to Financial Institutions and Governments globally, such as 24/7/365 FX trading, no cut-off time for international remittances, and improving a Financial institution's capital efficiency.
The CBDC exchange is the first dApp to run on CANVAS' connect - the privacy focused Layer 2 Blockchain integrated with StarkWare Validity (Zero Knowledge) Rollup technology. The Connect L2 is built for finance and provides the assurances of confidentiality, compliance, scalability & low cost transactions.
Traditional Foreign Exchange (FX) Markets & International Remittance networks are renowned for being slow, expensive and prone to errors. Canvas CBDC exchange showcases how the RBA’s eAUD can be successfully used to trade AUD for other international currencies in faster and more efficient ways.
CANVAS Digital CEO, David Lavecky said “We’re excited as part of the eAUD pilot, to have our CBDC exchange facilitate this historic FX trade. The eAUD, as a CBDC, holds the potential to address crucial challenges in both FX and International Remittance Markets such as improving transaction times, reducing fees, and providing more open access.”
“We believe that CBDCs, Digital Securities and Tokenised Assets will radically transform finance and markets over the next decade. Our use case demonstrates the benefits of using CBDCs in tokenised FX transactions and how our privacy focused Layer 2 blockchain provides improvements over traditional markets by eliminating market inefficiencies, errors, and settlement risks.,” he said.
Canvas is one of a handful of selected Use Case Providers in the RBA eAUD project alongside ANZ Bank and The Commonwealth Bank. Canvas is showcasing Tokenised Foreign Exchange (FX) and the benefits of using CBDC & Digital Currencies in place of traditional fiat currencies and platforms.
Canvas was Co-Founded by successful Australian tech entrepreneur brothers David & Daniel Lavecky in the belief that Blockchain, CBDCs, Digital Currencies & Tokenised Assets will radically transform financial and capital markets over the next decade with trillions of $ of securities and currencies to be tokenized and traded 24/7/365.
Digital X CEO Lisa Wade:
“DigitalX is proud to be a part of this historical moment that will revolutionise traditional financial systems. We believe CBDC’s are a natural evolution of Currency and we’re delighted to be testing FX transactions on Canvas CBDC exchange and Layer 2 Blockchain. It will supercharge the rollout of our key strategic initiatives, our real world asset tokenisation fund and digitising investment processes.”
“Canvas Connect assures us privacy, high speed and low transaction costs. Canvas CBDC exchange eliminates FX market inefficiencies and settlement risks for DigitalX.”
TAF Capital Co-Founder Michael Prendiville:
“This transaction is an exciting step, radically transforming financial and capital markets, creating efficiencies not available until now. We’re thrilled to partner with Canvas and use their Layer2 Blockchain technology. Traditional Foreign Exchange (FX) Markets & International Remittance networks are renowned for being slow, expensive and prone to errors, we now have a safe and instantaneous solution. FX transactions have been historically slow and not available on weekends or public holidays. We will now be able to operate 24/7 365.”