Melbourne fintech Novatti set to launch Aussie Dollar-backed stablecoin AUDD on Stellar blockchain
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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 set to go live on the Stellar blockchain – 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 earlier this year was developing a stablecoin called AUDC, planned for integration on Ripple’s XRP Ledger.
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Novatti representatives clarified with Stockhead via email today that AUDD is actually the new name for the formerly announced AUDC stablecoin.
“The stablecoin was renamed as the result of a trademark-filing complication,” the fintech explained. It had already registered AUDD alongside AUDC, however, so AUDD was the logical replacement.
Novatti also noted that AUDD is actually a “multichain solution”, meaning it will be enabled and operate on more than one blockchain.
Following its launch on the Stellar chain, further announcements are set to be made regarding AUDD’s integration on the XRP ledger and Ethereum blockchain.
“Novatti is receiving extensive technology support from Stellar and Ripple as part of their respective commitments to the launch. Our intention is to add AUDD to further blockchains on a case-by-case basis,” the firm clarified, adding:
“We believe Novatti’s ASX listing status, extensive regulatory licences and longevity in the industry will provide confidence in AUDD in comparison to other offerings.”
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 this week, which was organised by the RBA and Digital Finance CRC.