Proposed Australian migrant bank to be powered by blockchain

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Proposed Australian migrant bank to be powered by blockchain

Blockchain technology will be at the core of a new bank aimed at servicing Australia’s migrant population.

The ’boutique’ bank is being developed by ASX-listed Novatti Group (NOV), with the company currently awaiting the outcome of a banking licence application.

Novatti has signalled blockchain will be key to the bank’s success, recently telling investors it is pursuing a number of blockchain initiatives and expecting significant research and development funding.

“Novatti’s investment within the blockchain technology universe has been driven by core business fundamentals of improving international asset transfer efficiency,” said the company in a statement.


Novatti, Stellar partnership

Novatti has revealed it has soft-launched its initial Stellar stablecoin, after first partnering with the Stellar Network in April 2018 and is beta testing its Novattti AUD Utility Token which was first announced in October 2018.

But the company says a third stablecoin is now on the horizon after Novatti became a launch partner of IBM World Wire, which uses the Stellar Network as its underlying blockchain.

“IBM World Wire has provided a further layer including integration tools and interfaces on top of the Stellar network to create its network.

“Novatti is also planning a related stablecoin asset to be available on World Wire primarily for the settlement of new inbound remittances to Australia.”

The seamless blockchain-based international remittances would likely become a key element in Novatti’s suite of services provided by its proposed migrant bank.

Research and Development

Of all ASX-listed small caps to have promised blockchain technology development over the past few years, Novatti is one of the few to have made material in-roads.

The company’s blockchain research and development initiatives will see it gain a research and development refund from the Australian Tax Office of around $460,000 this month.

“This R&D application is largely related to furthering Novatti’s investigations into integrating and managing blockchain transactions with a more traditional database wallet infrastructure,” says the company.