The Stellar Network’s first Australian Dollar-backed utility token is being launched by an ASX-listed company.
Payments solutions company, Novatti Group (ASX:NOV), today revealed details about the stablecoin, which will be known as ‘Novattti AUD Utility Token’.
Held in trust by Novatti – one Novatti AUD Utility Token will always be equivalent to one Australian Dollar.
Through Stellar, the new stablecoin will offer a distributed ledger-based, foreign exchange alternative for anyone dealing with Australian currency.
Stellar Network ‘Anchor’
Upon launching the stablecoin, Novatti, will become the first AUD ‘anchor’ on the Stellar Network.
An anchor is an entity trusted to create tokens for the Stellar Network that are redeemable for, and backed by the anchor.
All money transactions on the Stellar Network occur in the form of digital currency issued by anchors, so anchors act as a bridge between existing fiat currencies and the Stellar Network.
“As an Anchor for the Stellar Network, consumers and institutions will be able to use the Novatti platform to instantly accept and settle payments in AUD, as well as easily access foreign exchanges via a lightning-fast global network,” said the company in a statement.
According to Stellar, most anchors are organisations like banks, savings institutions, farmers’ co-ops, central banks, and remittance companies.
The official launch of the Novatti AUD utility token is scheduled for 19 November 2018.
Novatti will generate revenue when holders of the Novatti AUD Utility Token convert their funds to Australian dollars, into an Australian bank account.
Last month OnRamp Technologies announced it had developed the first Australian Dollar-backed stablecoin for the Ethereum blockchain. Click here to read more.