Novatti To Launch Australian Dollar-Backed Stablecoin On Stellar (XLM)

Novatti, a payment technology and system integration provider, has announced that it will be leveraging the Stellar (XLM) blockchain to launch a new stablecoin pegged on the Australian Dollar (AUD).

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Novatti, a payment technology and system integration provider, has announced that it will be leveraging the Stellar (XLM) blockchain to launch a new stablecoin pegged on the Australian Dollar (AUD).

Novatti Utility Token to launch on Stellar’s Blockchain

A new stable-price cryptocurrency is set to launch on the Stellar (XLM) network and will be backed by the Australian Dollar similarly to the way USD-backed stablecoins function.

Similar to USD-backed digital assets, the new tokens will derive their value in reference to the AUD and all tokens in circulation will have an equal amount of Australian dollars held in reserve.

The stablecoin is a product of Novatti, an Australia-based utility and payments provider. While speaking at the recently concluded Money 20/20 conference in Las Vegas, the company said that it expects to launch the XLM-based token on November 19, 2018.

The company has said that the token will be known as Novatti AUD Utility Token, adding that it will hold fiat reserves for all the stablecoins at its subsidiary Flexewallet Pty Ltd.

Flexewallet Pty Ltd. is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a remittance and network provider.

The company’s Managing Director said at the Money 20/20 event that the token will allow users to easily purchase goods or pay for services at enterprises and crypto-based businesses within Australia.

Instant access and faster payments

According to the press statement announcing the project, the Novatti AUD Token will make it possible for consumers and institutions to utilize one platform to “instantly accept and settle payments”  in the Australian dollar.

The official press release notes that Novatti is the first anchor in AUD on the increasingly popular Stellar Network. Anchors on the XLM network are used as a token-fiat bridge, which allows issuing entities to release digital tokens swappable for fiat currencies.

The statement says in part:

“As an anchor to the Stellar Network, Novatti will accept inbound payments, process withdrawals and transfers, and initiate transactions for any KYC’d consumer or enterprise who seeks to transact via a Novatti user-facing platform or portal.”

Novatti has said that it will work with banks, licensed money services, and other financial institutions that seek to utilize cryptocurrencies in their services.

Peter Cook, the company’s managing director added that being a publicly listed company should help inculcate trust among potential users of the token.

Second AUD-backed stablecoin

Novatti Token is the second AUD-backed stablecoin to be slated for release on the Stellar blockchain.

It follows in the footsteps of Emparta, which has partnered with crypto exchange BitTrade for the creation of a new fiat-backed token in 2019. According to BitTrade’s Jonathan Miller, the token will help reduce the impact of volatility in the crypto industry.

He added that price-stable coins could potentially “boost trust” and help hasten the global adoption of crypto assets and crypto-related projects.

The number of stablecoins has increased significantly in 2018, with reports indicating that there are as many as 50 new projects in the pipeline.

The leading stablecoin remains Tether (USD) in both liquidity and widespread use. However, it is facing stiff competition from newly created coins, an even tougher fight given the controversy that keeps surfacing about its actual dollar reserves.

Recently, leading cryptocurrency exchanges and trading platforms OKEx and Huobi listed four USD-backed coins. These assets include:

  • Trust Token’s TrueUSD
  • Winklevoss’ Gemini Dollar (GUSD)
  • The Paxos Standard Token (PAX)
  • USD Coin (USDC).

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