Australian Dollar Stablecoin to Launch on Stellar’s Blockchain

Oct 24, 2018 at 19:14

A new stablecoin that will be pegged to the Australian dollar for the benefit of consumer and business entities will be out next month in the Stellar blockchain.

CoinDesk reported that the Novatti Group made the announcement was made at the Money 20/20 conference in Las Vegas.

The listed Australia-based online payments processor will roll out the Novatti AUD Utility Token on November 19.

The price for one token will be equivalent to 1 AUD to be held in a trust. It can be used for remittance or purchase transactions.

“We think that people will use them [stablecoins] to help purchase goods from Australian enterprises. And we think that will also use them for the payment of bills or for services inside of Australia,” Peter Cook, Novatti’s managing director said while revealing that several firms beyond its clientele have expressed interest in the upcoming token.

“We will be working with licensed money service businesses, banks and enterprises, who want access to digital assets,” Cook said, declining to name which banks at this stage. “Novatti is a publicly listed company, it’s listed on the Australian stock exchange. So that should give [users] a lot of trust.”

Novatti, a licensed payments distributor, has clients like Vox Telecom in Europe and remittance provider MoniSend in South Africa.

The Australian firm’s announcement comes following the surge of new United States dollar-pegged tokens making entry this year. Among the prime movers are Circle with its TrustToken’s TrueUSD, Paxos with its Paxos Standard Dollar and the Winklevoss brothers with their Gemini Dollar.

Lisa Nestor, director of partnerships at the Stellar Development Foundation, said Stellar already supports at least 10 stablecoins.

“There are network effects here,” Nestor told CoinDesk.

“It took us almost a year to get our first two currency anchors on the network. But then each time we add another one, it makes it easier to add one more,” she added.

Nestor also noted how the crypto environment is changing how these virtual cryptocurrency types adopt to changing market conditions particularly the fluctuations in stablecoins.

“I think there was tension in the crypto marketplace, and that drove many of the earlier stablecoins. But we also see continued adoption and growth in the payments space.”