Novatti To Launch AUD Stablecoin On Stellar (XLM)

By Kevin • May 6, 2022 9:08 pm • Comments

Novatti is an Australian fintech company that just announced that it will be launching an Australian-dollar backed stable coin called AUDC.

The launch of AUDC will be on the Stellar blockchain which is a network that is known for its support for stable coins thanks to its fast speed, low transaction costs, and its interoperability with other blockchains.

Since the coin will be backed with a fiat currency, the fintech company hopes that it will be able to be used to satisfy the high demand for stable coins within the industry.

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The firm believes that this is where the industry is headed as the demand continues to grow and businesses are looking for a way to utilize blockchain in their existing payment methods.

Stellar.org reports:

Novatti believes that this is the direction that payments are heading, with growth in the demand for stable coins only expected to accelerate.

By launching an AUD backed stable coin on Stellar, a network designed for stable coins and renown for its speed, low-cost, and interoperability, new opportunities to power more seamless and near-instant financial services emerge both domestically and across borders.

AUDC will be integrated into Novatti’s existing suite of payment solutions, providing clients with even more choice in how they choose to pay and be paid, while creating new business use cases with potential for: faster and lower cost domestic, cross-border and billing payments; as well as the option for stable coin-linked payment cards. In doing so, it will create capacity for new revenue streams for Novatti, including conversion, transaction and merchant fees, subject to product demand.

The Stellar Development Foundation also has a significant role to play in the success of the launch of this new stable coin.

The foundation supported the development of the project without taking any additional capital which was what enabled the staged development which led to the successful launch.

Novatti mentioned that the main reasons why it selected Stellar as the blockchain of choice is due to the fact that Stellar is already an established network used for currencies and payments.

So far, Stellar’s blockchain, which relies on its native token XLM, has conducted around 2 billion operations since its launch in 2014.

Stellar.org concludes:

Novatti’s Managing Director, Peter Cook, said: “At the core of Novatti’s vision is to enable business to pay and be paid, from any device, anywhere.

Launching our own stablecoin will further this aim. We see digital currencies, such as stablecoins, as the evolution of money and payments as we know it.

If you look back in history, we traded in silver and gold, then paper and now plastic banknotes. Novatti’s stablecoin is part of the next leap in payments innovation, creating a purely digital representation of physical currency.

We believe the demand for the use of digital currencies will only rapidly increase going forward, so launching this new stablecoin is timely, placing Novatti ahead of the curve. At the same time, we are incredibly excited to be launching on the Stellar network.

Through this new product, we will be able to provide our clients with a faster, lower cost and more flexible option to pay and be paid, while opening up potential new revenue streams.”

With the addition of a popular stable coin like AUDC being launched on the network, the value of XLM is expected to be bullish as more and more projects rely on it for transactions across the Stellar blockchain.

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