Novatti to launch a new Australian stablecoin on Stellar network

24 Oct, 2018
by Joeri Cant
News
Novatti to launch a new Australian stablecoin on Stellar network

Novatti, an Australian utility billing and payment services provider, announced that it is launching the Novatti AUD Utility Token, a stablecoin on the Stellar network that will be completely backed in a 1:1 ratio to the Australian dollar.

Novatti explained that the stablecoin will be used mainly for services related to transferring funds such as remittance payments or retail purchases.

Peter Cook, Novatti's managing director, told CoinDesk that he thinks that people will use the stablecoins to help purchase goods from Australian enterprises.

'We think that people will also use them for the payment of bills or for services inside of Australia.'

Novatti's coin is the second stablecoin to be tied to AUD, the first being Emparta, but will be the first AUD anchor on the Stellar Network. Stellar, at this point, already supports at least 10 stablecoins.

'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.'

Jonathon Miller, managing director at Bit Trade, one of Australia’s oldest digital currency exchanges, said that he thinks that stablecoins solve one of the principal issues that may drive investors seeking steady returns.

'We believe stablecoins will boost trust, accelerate widespread adoption, and could function as the backbone of blockchain-based financial applications, especially here in Australia given the favorable regulatory environment.'

Stablecoins have been growing in popularity in 2018, with several new projects launched or announced and thanks to the Tether debacle, more might be on their way.

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Read more about: Stellar (XLM)

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