The decision of the Australian bank to halt the development of the ETH-based stablecoin project shows that startups are better positioned to innovate or adapt than established banks.
The National Australia Bank recently abandoned its ETH-based stablecoin initiative, and the development team behind the project is now involved with the Ubiquity stablecoin.
The Australian bank’s decision to shelve the stablecoin project shows that startups are better positioned to innovate or adapt than established banks.
NAB Team Joins Ubiquity
The National Australia Bank (NAB) recently halted the development of an Ethereum-based stablecoin, just over a year after announcing its intention to launch it.
According to a report, the development team behind the AUDN stablecoin initiative is now associated with a project called Ubiquity.
The new stablecoin project, backed by the Australian dollar, is supported by Animoca Brands, Concave, and Merit Circle.
Another Australian bank, ANZ Bank, which is also participating in this initiative, has been developing its stablecoin known as A$DC.
Before deciding to shut down the stablecoin project, NAB hoped that the stablecoin would facilitate real-time blockchain transactions using local currency.
The bank expected it to be used for cross-border payments, carbon credit transactions, and repurchase agreements.
Startups Better Positioned to Innovate
However, with the AUDN project now shelved, the development team has opted to continue its work under the wings of Cloudtech.
By abandoning the stablecoin, NAB highlighted a growing trend in the fintech sector, where startups appear to be better positioned to innovate or adapt than established banks.
This assertion is demonstrated by the fact that former NAB executives Robert Waugh and Drew Bradford are spearheading Ubiquity’s stablecoin project.
In making the case for moving Ubiquity, Waugh reportedly argued that working in a startup environment makes it possible to achieve their objectives more quickly and cost-effectively.
The former NAB executive also expressed optimism about the prospects of stablecoins in Australia, citing their potential use by institutional investors and in tokenization of real-world assets.
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