HESTA, ANZ pilot use of A$DC stablecoin for payday super

HESTA and ANZ are examining whether the bank's stablecoin could allow the industry super giant to comply with the government's payday super rules

Superannuation giant HESTA and ANZ are looking at using the bank’s stablecoin to help the industry fund comply with the government’s payday superannuation rules, a move that will more than double the volume of payments super funds receive from employers.

ANZ, which created a digital version of a deposit, known as the A$DC, early last year, has been exploring applications in wholesale markets together with the Reserve Bank. One of the benefits of digital currencies is the ability to attach data to a payment and move both at the same time.

The thinking at HESTA and ANZ is that the stablecoin could carry details of an employee’s TFN and superannuation account, allowing the industry fund to automate the processing of payments and avoid having to chase employers for missing details.

The government’s payday super rules, which will come into effect from mid-2025, will require employers to pay superannuation contributions into an employee’s nominated account on a pay cycle, rather than quarterly as is the case now.

The change will lift the volume of payments super funds receive from 40 million a year to 110 million, and funds are concerned about the extra administrative burden and the potential for employers to make mistakes.

The stablecoin project is one of several initiatives being undertaken by HESTA and ANZ to explore new technologies and improve the efficiency of the superannuation system.

The two parties are also working on a project to use artificial intelligence to automate the processing of death benefit claims, and another initiative to use blockchain technology to create a digital superannuation statement that can be easily accessed by members.

HESTA chief operating officer Kate Sparkes said the fund was keen to explore new technologies that could help it improve the member experience and reduce costs.

“We’re always looking for ways to make it easier for members to get their super paid on time and in full, and to reduce the administrative burden on employers,” she said.

“ANZ’s stablecoin has the potential to do both of these things, and we’re excited to be working with them on this project.”

ANZ managing director, digital, Maile Carnegie said the bank was working closely with HESTA and other superannuation funds to explore innovative solutions for the industry.

“We believe that digital currencies have the potential to transform the way that superannuation is paid and received,” she said.

“This project with HESTA is a great example of how we can use new technologies to improve the efficiency and effectiveness of the superannuation system.”