New stablecoin backed 1-for-1 by Australian dollar launches on blockchain
A new stablecoin is scheduled to launch on Stellar’s blockchain in November, according to the announcement made at the Las Vegas Money 20/20 Conference by Novatti Group, an Australian online payments processor.
Scheduled to be released November 19th, the Novatti AUD Utility Token will be tied to Australian dollar, backed 1-for-1 with AUD being held in trust. The news comes in after a rough week when the well-known stablecoin tether (USDT) fell below $1 and a number of exchanges listed alternatives.
Additionally to a ‘traditional’ usage for stablecoin as a tool to move money between exchanges, Novatti Group sees its new token as a ‘tool of its own’, used for all of common cases, including purchases.
According to Novatti’s managing director, Peter Cook, establishment of the token will also help to further secure the cryptocurrency marketplace, as usage of it requires a compliant know-your-customer identity check.
According to Cook, among their other customers there will also be well-recognized financial institutions, such as licensed money service businesses and banks. To further encourage crypto-industry members, Cook emphasized that Novatti Group is a publicly traded company, and is required by law to follow strict financial guidelines.
At this moment, Stellar already supports at least 10 stablecoins, including USD Anchor, created by startup Stronghold in collaboration with IBM. Following a certain market tension with earlier stablecoins, there’s more demand for better alternatives on the market, according to Lisa Nestor, director of partnerships at the Stellar Development Foundation. She also emphasized that with the continued adoption there’s also a significant growth and demand for using stablecoins in the payments space.