Melbourne fintech Novatti set to launch Aussie Dollar-backed stablecoin AUDD on Stellar blockchain

12 October 2022

in XLM

Reading Time: 3 mins read

An Aussie-dollar backed stablecoin… on the Stellar blockchain? Yep. Multi-channel payments company Novatti (ASX:NOV) is preparing to launch AUDD to the market.

The Australian Dollar-backed stablecoin AUDD will go live on the Stellar (XLM) chain on November 1, according to info shared with Stockhead today.

The announcement was made by Novatti at the Stellar Meridian fintech conference currently underway in Rome, with the company revealing the new stablecoin will be available for direct, 1:1 swaps of Aussie Dollars, via its online platform and app.

It’s not the first AUD-backed stablecoin to market – for example Finder-favoured TrueAUD (TAUD) is issued by TrustToken on the Ethereum network, and Australian Dollar Token (AUDT) is created/issued by Sergei Sergienko‘s Chrono.tech company. These are both AUSTRAC-registered stablecoin solutions currently at play.

Similarly, there’s XAUD, developed by blockchain company TAU and the A$DC stablecoin developed by ANZ bank, which is being piloted by the federal government to help collect excise taxes and is currently under regulatory review.

And not forgetting, too, of course, the Reserve Bank Australia-backed research for an Australian CBDC (central bank digital currency).

AUDD appears to be the first Aussie-dollar stablecoin, however, that’s been developed on Stellar – a bitter rival of Ripple Labs and its XRP project. Both blockchain companies are aiming to lead the way in the facilitation of low-cost financial transfers and cross-border transactions between any currency.

Interestingly, though, Novatti also has a partnership with XRP and has already developed a stablecoin called AUDC that’s planned for integration on Ripple’s XRP Ledger.

🔥 JUST IN: Novatti announces stablecoin deals with Stellar & Ripplehttps://t.co/Vs1A4EcCj2 pic.twitter.com/gz4PFZs9gF

— Cryptic Poet 👑 (@1CrypticPoet) June 9, 2022

‘Strong demand… greater choice’

Novatti says that AUDD has been developed to “meet continued strong demand for digital currencies and improved payments services by providing a fully collateralised digital representation of the Australian dollar.”

Users will be able to access AUDD through any Stellar-enabled wallet and the aim for the token is to meet a range of use cases, including global remittance, near-instant settlements, DeFi pairings and more.

Novatti’s managing director, Peter Cook, said: “The launch of AUDD enables Australian and global businesses to take advantage of the blockchain-based innovations in global payments.”

Michaela Juric, Novatti’s GM Blockchain and Digital Assets, added: “AUDD provides our clients with greater choice in how to pay and be paid, with the potential for faster and lower cost domestic, cross-border, and billing payments as well as for stablecoin-linked payment cards.”

Novatti also noted that the AUDD announcement follows the firm’s attendance at a “roundtable” CBDC-research-related meeting in Sydney today, which was organised by the RBA and Digital Finance CRC.