Ripple To Support Launch Of Australian Dollar-Backed Stablecoin

Australian based Fintech company, Novatti Group has laid its plan of rolling out stablecoin, AUDC. It announced that the token will be issued on the XRP ledger and Stellar chain. Ripple and Stellar will be helping the firm with its development and launch.

AUCD to be issued on XRP ledger

AUDC stablecoin is a Fintech company’s part of the suite of digital payment products. The token will be later integrated with their international payment network. Ripple is famous for its low cost and fast payment network. While it also has its own cryptocurrency, XRP, which is one of the 10 largest digital assets.

AUDC will be pegged 1:1 against fiat currency like any other famous stablecoin. Any individual or institution will be able to buy the 1 AUDC for 1 Australian Dollar (AUD). According to the report, Novatti will be generating income from the product via conversion and merchant fees. At the end of the transaction, the token can be stored in a digital wallet while it can also be cashed out anytime.

Novatti sees surge in use of digital tokens

Peter Cook, Managing Director of Novatti, mentioned that they innovate payment ways for the users. He highlighted that they used XRP for the cross border payment last year. The transaction was made from Australia to the Philippines. This made them to issue their new stablecoin AUDC on the XRP ledger.

Cook added that the demand for digital currencies will only increase here. Launching AUCD stablecoin on Ripple’s ledger will surely help Fintech grab the surging demand.

The stablecoins have come under the scrutiny of many governments over the globe since the collapse of TerraUSD. USTC market cap fell from $18.6 billion to stand at $100 million. However, Regulators have taken their first step in order to protect stablecoins. Meanwhile, stablecoins total market cap has shrunk to stand at $159.2 billion. While its 24 trading volume stands at $55.9 billion.