Rushd Averroes’ Journey – From the Babb App to Pioneering the Banks On-Chain Movement

Today we meet Rushd Averroes, a figure in the fintech and blockchain space for quite a while – a founder, a CEO and a visionary at heart willing to change the current financial system.

He started with nothing but a problem with the UK banking system, brainstormed the Babb app, acquired all necessary licenses to operate in the UK and Europe and now is willing to take this a step further through the ReDeFi project.

So, without further ado, let’s jump in on his journey.

Interviewer – “How did the idea of creating Babb sparkle?”

Rushd said,

“I first arrived in the UK as an immigrant from Yemen, and every bank refused to open an account for me.

“I paid extra fees for over two years and couldn’t integrate into the banking system, simply because I lacked a fixed address and a job. I refused to accept this.

“Bank accounts and access to finance should be basic human rights for everyone, regardless of origin or financial status.”

Interviewer – “What were the first steps you took in creating the BABB app?”

Rushd said,

“My anger and frustration wouldn’t get me anywhere. I had to do something about it. Despite financial constraints, language barriers and lack of resources and knowledge, I decided to build a global bank for everyone. It sounded bold – impossible even. Many friends doubted me, but I was determined.

“I started the first R&D from a London coffee shop, equipped with just a laptop and a smartphone, and after six months of dedicated work, BABB (bank account based blockchain) was born, complete with a robust, inclusive and regulatory-friendly business plan.”

Interviewer – “How were you able to start developing BABB?”

Rushd said,

“To finance this venture, I participated in the early Ethereum ICO and bought Bitcoin. This allowed me to form a small team of experts in technology, finance and marketing.

“We refined our offerings, developed prototypes, gained positive feedback from regulators and then launched an ICO. We raised 18,000 ETH, worth approximately $20 million at the time. It was a moment of celebration, but we knew the hard work had just begun.

“We scaled the team, engaged with regulators and outsourced some tech development to expedite delivery. But then the 2018 crypto crash hit, leaving us with a fraction of our raised funds and me personally $3 million in debt.”

Interviewer – “It was a big hit indeed for the crypto market. How did you manage to pivot and rebuild from there?”

Rushd said,

“I had to make the difficult decision to halt development, reduce the team and return to that single hot desk. But I refused to give up. I rebuilt the company, secured banking partnerships and paid off my debts.

“With a smaller team, we managed to release the first BABB MVP – the UK’s first crypto wallet with fiat on- and off-ramp functionality. This gained traction and attracted VC interest, but the Covid-19 pandemic brought everything to a halt.”

Interviewer – “How did stakeholders and the BABB team react when Covid-19 hit?”

Rushd said,

“Adapting to this crisis wasn’t an easy task. Investors paused their plans due to the uncertainty of the pandemic. Once again, I had to cut costs and operate with a skeleton crew. However, we saw an opportunity to help.

“We quickly transformed the BABB app into a non-profit fundraising platform to support the UK’s NHS and other organizations fighting the pandemic. We launched this within a tight timeframe and with limited resources but with banking-grade security.”

Interviewer – “When did you start collaborating with the FCA and the relevant UK authorities?”

Rushd said,

“The FCA stepped in and required us to obtain regulatory approval. We had to choose between applying for licenses or leaving the UK. After 18 months of intense back-and-forth with the FCA, we have not only secured a crypto license but also an e-money license in 2021.

“The FCA recognized our innovative approach and invited us to join their ‘innovation hub.’ This victory led to the release of our CurrencyX stablecoins and hybrid bank accounts, attracting 130,000 users from over 100 countries.”

Interviewer – “You survived two bear markets, the ‘FCA’ and a global pandemic as a start-up company. How did the new initiative, ReDeFi, come to the surface?”

Rushd said,

“Despite our progress, scaling the BABB app faced significant hurdles due to the legacy systems used by traditional banks. Building gateways in each country was time-consuming and costly.

“The solution? Leverage the power of blockchain. We introduced ReDeFi in October 2023, a regulated decentralized finance platform that meets the business and regulatory needs of all stakeholders.

“This scalable, compliant and global platform allows any bank or financial institution to launch its local currency on the blockchain. BABB, as an e-money institution in the UK, is beta testing the first on-chain GBP on ReDeFi.”

Interviewer – “So, how does Onchain Money compete with stablecoins or current solutions?”

Rushd said,

“Onchain Money is not just another stablecoin – the Onchain GBP is a fully decentralized version of a traditional GBP account, adhering to regulatory requirements and the ‘singleness of money’ principle.

“Reading our whitepaper can provide more clear info and use cases. But in essence, it’s the first true realization of BABB’s (bank account based blockchain) concept and is set to launch in the next two to four months.

“And this is just the beginning. The potential use cases for ReDeFi are vast, from remittances and e-commerce to government applications and financial inclusion initiatives. It’s a platform for building a new, more inclusive financial ecosystem.”

Interviewer – “What is the current team and your vision with ReDeFi?”

Rushd said,

“With a core team of five and limited resources, we’ve already accomplished so much. Imagine what we can achieve with greater funding and a team of 500 dedicated to building the ‘banks on-chain’ future. We promise to make banking accessible to all, regardless of their circumstances.

“If you want to be part of this journey and help us achieve this vision faster, please review our product roadmap and fundraising roadmap.”

Visit ReDeFi’s website here.