Novatti Expands Its AUDD Stablecoin To XRP Ledger

Updated: 13 June 2023

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Novatti Group Ltd, an Australian payments fintech, has extended its Australian dollar-backed stablecoin AUDD to XRP Ledger. Novatti is a leading fintech enabling businesses to pay and be paid. In an announcement, the platform revealed its 1:1 fiat-backed stablecoin, AUDD, is now live on the XRP ledger (XRPL) — an open-source, energy-efficient, and decentralized blockchain.

🚀AUDD is now live on the #XRPLedger!
We are thrilled to announce that AUDD has officially been deployed on the XRP Ledger (#XRPL) – an open-source, energy-efficient, decentralised blockchain.
Find out more here: https://t.co/WYfxbKThxT.#AUDD #blockchain pic.twitter.com/t5Mtkj40oS

— AUDD (@AUDD_digital) June 13, 2023

The AUDD will be accessible for a direct 1:1 exchange of fiat Australian Dollars through the XRPL. Transactions on the XRPL are quick (3-5 seconds per transaction) and cheap (fractions of a penny per transaction), making it perfect for stablecoins and asset tokenization scalability.

Following the expansion, users may use AUDD to make payments and trade with other XRPL-based tokens. Notably, user accounts can access AUDD through any XRPL-enabled wallet.

Peter Cook, the CEO of Novatti Group, has further stated:

Novatti is excited to continue bringing our stablecoin roadmap to life to provide consumers faster, more secure payments with lower friction costs. By deploying AUDD on the XRP Ledger, we will be able to capture the growing demand for digital currencies and create new revenue streams for our business while delivering on our promise to make our solution available to multiple networks.

Novatti is notably incorporating AUDD into its current payment suite. According to the company, the stablecoin aims to fulfill use cases such as remittance, payment gateway, trading pair, and stablecoin-as-a-service.

Novatti Taps Into Stablecoin Realm

Stablecoin adoption has been on the rise over the past few years. In 2021, 13% of crypto payments on BitPay used stablecoin, such as Tether. Further, the total circulating stablecoin supply skyrocketed from $29.38 billion in January 2021 to over $182.14 billion by March 31, 2022.

In 2021, Novatti used Ripple’s On-Demand Liquidity service, which uses XRP as a bridge between two fiat currencies, for cross-border payments between Australia and the Philippines.

Novatti also recently participated in a research project to explore the use cases and benefits of a central bank digital currency (CBDC) in Australia. The Digital Finance Cooperative Research Centre (DFCRC) and the Reserve Bank of Australia (RBA) led the project. In the pilot project, Novatti issued eAUDD, a stablecoin fully backed by the pilot CBDC issued by the RBA. This has contributed to the rising momentum of stablecoin adoption.

CBDCs And Stablecoins Potential In the Ecosystem

CBDCs and stablecoins are fascinating and vital use cases for real-world asset tokenization, promising better data management, security, and stability for enterprises and financial institutions. Moreover, findings from Ripple’s 2023 New Report Value point to finance leaders at enterprises and financial institutions being more confident in cryptocurrencies, stablecoins, and CBDCs to meet their business needs compared to traditional fiat.

This marks a critical flex point in the journey toward the Internet of Value. As more and more assets are tokenized, global liquidity increases, and greater financial inclusion brings in more participants; companies can tap into new markets, open up new revenue streams, and offer new financial services to customers.