- National Australia Bank halts Ethereum-based AUDN stablecoin, team transitions to new Ubiquity stablecoin project under Cloudtech.
- AUDN was envisioned for real-time blockchain transactions and cross-border payments but is now indefinitely shelved.
The National Australia Bank (NAB) has recently withdrawn from its project to develop an Ethereum-based stablecoin, a decision that underscores the challenges traditional banks face in innovating within the fast-paced fintech sector. The development team previously responsible for the AUDN stablecoin has transitioned to a new venture, joining the Ubiquity stablecoin project.
“We are committed to pursuing the right digital asset opportunities with clear customer benefits. Bringing multi-currency stablecoins to market demonstrates NAB’s focus on simplifying international banking protocols to increase speed and transparency while lowering costs and reducing complexity for customers,” Mr Bradford said.
This project comes just over a year after NAB announced its intentions to launch the AUDN, aimed at facilitating real-time transactions on the blockchain with the Australian dollar. The bank envisioned its use in various applications including cross-border payments, carbon credit transactions, and repurchase agreements.
However, the AUDN project has now been shelved, with the team opting to continue their efforts under the startup, Cloudtech. This pivot highlights a broader trend where fintech startups are increasingly viewed as more agile and adept at adapting to new technologies compared to their more established banking counterparts.
Fireblocks CEO and Co-founder, Michael Shaulov, said: “Australia continues to be a global torch bearer for tokenisation in financial services, with NAB leading the charge in the world’s first use case of a large financial institution leveraging a public blockchain for cross-border payment rails. NAB’s successful trade execution marks the beginning of the evolution of financial services from Web2 to Web3, underpinned by blockchain technology as well as strong governance and risk management”.
Ubiquity, the new focus for the former NAB team, is also backed by notable names in the tech and crypto industries, including Animoca Brands, Concave, and Merit Circle, and enjoys participation from another major Australian financial institution, ANZ Bank. ANZ is developing its own stablecoin, A$DC, which aligns with its digital asset strategies.
The shift of the NAB team to Ubiquity was championed by former NAB executives Robert Waugh and Drew Bradford, who are now leading the Ubiquity project. Waugh has pointed out the advantages of a startup environment, which he believes offers a path to achieving goals more efficiently and cost-effectively than possible within traditional banking structures.
Waugh also expressed a positive outlook on the future of stablecoins in Australia. He noted their potential for widespread use among institutional investors and for the tokenization of real-world assets, suggesting a promising future for digital currencies in the Australian financial sector.
This transition from a traditional bank project to a startup underscores the fintech industry and the continuous evolution of financial technologies.
