The National Australia Bank (NAB) has stopped developing its Ethereum-based stablecoin, AUDN. This decision came barely a year after the bank had initially revealed its intention to enter the stablecoin industry. The development team behind AUDN has left NAB to pursue a new project called Ubiquity, supported by consortium investors.
NAB’s Pullback from AUDN
The National Australia Bank recently stopped developing the Ethereum-based stablecoin. The halting of AUDN development marks a critical turning point for NAB. According to the Australian Financial Review, the bank discreetly ended the initiative and let the development team seek fresh prospects.
The team is currently working on Ubiquity, which intends to build a new stablecoin backed by Australian dollars. This latest effort will also include a relationship with another large Australian financial institution, ANZ Bank, which is creating its stablecoin, A$DC.
In January 2023, NAB announced grandiose ambitions for AUDN, aiming to enable real-time transactions on the blockchain with Australian dollars. The stablecoin was supposed to help with various uses, such as carbon credit trading, international money transfers, and swap agreements.
The Significance of Ubiquity
The former NAB team, now known as CloudTech, is preparing to introduce Ubiquity, a stablecoin completely backed by Australian dollars deposited in a major bank. The initiative aligns with a broader trend in the financial technology sector, where startups are often better positioned for innovation and rapid adaptation.
National Australia Bank Debuts AUDN Stablecoin on EthereumGovernment Regulations and Market Potential
Robert Waugh, NAB’s former head of wealth products, and Drew Bradford, NAB’s former executive general manager for markets, are driving the push at Ubiquity. They anticipated that operating outside the traditional banking system would give more flexibility and opportunities for development. According to Waugh, the startup environment provides a more efficient and cost-effective road to innovation.
The effort to establish Ubiquity comes as the Australian government considers regulating stablecoins as part of its larger cryptocurrency legislation framework. This regulatory framework might greatly influence stablecoin development and acceptance in the country. Waugh is hopeful about the future of stablecoins in Australia, noting possible institutional investor applications and the tokenization of real-world assets.
The decision to cease AUDN development and then create Ubiquity has piqued the curiosity of numerous financial and cryptocurrency players. The Reserve Bank of Australia has recognized the potential benefits of asset tokenization.
