The National Australia Bank (NAB) recently decided to abandon its stablecoin project, underscoring the challenges traditional banks face in rapidly innovating compared to fintech startups. The development team from the NAB stablecoin initiative has now joined the Ubiquity stablecoin project.
NAB Team Joins Ubiquity
NAB halted its Ethereum-based stablecoin project, AUDN, just over a year after its announcement. The team behind AUDN is now working on Ubiquity, a new stablecoin backed by the Australian dollar. This project is supported by notable entities such as Animoca Brands, Concave, and Merit Circle. Additionally, ANZ Bank, another major Australian financial institution, is also developing its stablecoin, A$DC, and is participating in this initiative.
Before shelving the project, NAB envisioned that AUDN would enable real-time blockchain transactions in local currency. The bank aimed for its use in cross-border payments, carbon credit transactions, and repurchase agreements.
Startups Better Positioned to Innovate
The decision to abandon the stablecoin project highlights a trend in the fintech sector: startups are often better positioned to innovate and adapt than established banks. The former NAB executives, Robert Waugh and Drew Bradford, who are now leading the Ubiquity project, believe that the startup environment allows for achieving objectives more quickly and cost-effectively.
Also Read: NAB Ventures Invests in Zodia Custody’s Australia Expansion
Waugh has expressed optimism about the future of stablecoins in Australia, emphasizing their potential use by institutional investors and in the tokenization of real-world assets.
Future Prospects of Stablecoins in Australia
The involvement of prominent former NAB executives in Ubiquity signifies a strong belief in the potential of stablecoins within the Australian financial ecosystem. This transition also reflects a broader trend where financial innovation is increasingly driven by agile, smaller firms rather than traditional banking giants.
