National Australia Bank (NAB), one of the leading banks in the Oceania axis, has discontinued its stablecoin project, termed AUDN, barely a year after disclosing plans to embark on the initiative, which would have made it the second financial institution in Australia to attain such a tremendous feat.
Notably, NAB's plans to discontinue its stablecoin project were revealed via a recent report from the Australian Financial Review, attracting considerable attention among individuals in the finance sector.
Why NAB Discontinued Its Stablecoin Project
According to the Australian Financial Review report, the NAB halted its Ethereum-based stablecoin project because the development team members started leaving the bank, opting to embark on developing a similar project in collaboration with another financial institution.
Notedly, the development team is partnering with ANZ bank, another financial firm based in Australia, to develop a new stablecoin, the Ubiquity, supported by leading brands ranging from Merit Circle, Concave, Animoca brands, etc.
What Is Next After Halting Its Stablecoin Project?
While the NAB has chosen to keep mute about the sudden development, it is anticipated that the unexpected cessation of its stablecoin project launch must have dealt a massive blow to the banking firm, shattering its dreams of developing a payment system on the Ethereum and Algorand blockchains.
Intriguingly, the NBA aims to develop an avenue for Australian customers to complete transactions in real-time and on blockchain, using Australian dollars via the AUDN.
Aside from catalyzing real-time and blockchain transactions, the stablecoin project was also poised to enhance other applications, ranging from repurchase agreements, carbon credit trading, and overseas money transfers, among several other features.
Meanwhile, the development team members' decision to partner with a competitive platform could imply that ANZ bank offered them something substantial. Hence, the sudden decision. It, therefore, points at NAB reviewing its policies to forestall a similar event, even as it seeks to circumvent its recent setback.
