Novatti Group, an international payments processor, has announced that it’s developing a new stablecoin pegged to the Australian dollar in partnership with both Ripple and Stellar.
Novatti, Ripple, And Stellar Work On A Stablecoin
Novatti Group is one of the many companies that has partnered with Ripple to use its XRP-based services. In April 2021, the two unveiled a service that facilitates fast, low-cost remittances and payments between Australia and the Philippines.
Now, Novatti is working on a stablecoin designed to hold its value with the Australian dollar (AUD). The company will integrate the AUDC stablecoin and will start using it on the networks of the two rival fast-payments blockchain firms, Ripple and Stellar.
For those unaware, Jed McCaleb, one of the Ripple founders, left to create Stellar Lumens in 2014 after irreconcilable differences with the other founder Christopher Larsen.
The AUDC stablecoin will be backed 1-for-1 with the AUD held in a trust account. It will be the first AUD-pegged crypto asset on both Ripple and Stellar, though not the first in the market. These companies are largely financing the development work and will also market the stablecoin to potential customers.
Peter Cook, Novatti’s managing director, noted that the use of cryptocurrencies is rapidly growing across the globe. As such, he thinks launching the stablecoin will help the company become a greater part of this booming digital payments market.
Users will be able to purchase the token with AUD. It can be transferred on the blockchain at zero international fees. AUDC can then be stored in a wallet as a cryptocurrency or cashed out as the Australian dollar.
The news of Novatt’s stablecoin collaboration with Ripple and Stellar comes as all eyes have turned to the stablecoin market in recent weeks following the dramatic implosion of Terra’s UST algorithmic stablecoin and its sister LUNA token.
The Terra meltdown sent shockwaves through global financial markets, and regulators worldwide are now calling for faster comprehensive crypto regulation.
The success of the Ripple, Stellar-backed AUDC stablecoin remains to be seen.
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