Novatti launches AUDD on XRPL for global payments

The adoption of stablecoins has been steadily increasing in recent years. According to The Block Research’s 2023 Digital Asset Outlook report, stablecoins have gained product-market fit and institutional adoption, with their overall usage reaching new records in 2022. The annual adjusted transaction volume of stablecoins surpassed $7.2 trillion in 2022, reflecting a 19% year-over-year volume growth.

Stablecoins, unlike central bank digital currencies (CBDCs) that are issued and managed by governments, are typically issued and managed by private entities. They are often pegged to a major currency, such as the US dollar, which ensures minimal volatility beyond the fluctuations of the underlying currency. This stability makes stablecoins attractive even during market volatility, leading to high demand.

Currently, stablecoins pegged to the US dollar have gained the most traction. However, stablecoins pegged to other fiat currencies are also expected to gain adoption as regulatory frameworks continue to develop, particularly in Europe, Latin America, and Asia.

In Australia, Novatti Group Limited, a leading fintech company, has introduced its fiat-backed stablecoin called AUDD on the XRP Ledger (XRPL). The XRPL is an open-source, decentralized blockchain known for its energy efficiency and fast transaction speeds of approximately 3-5 seconds per transaction. AUDD can be directly swapped with fiat Australian Dollars on the XRPL, allowing users worldwide to utilize AUDD for payments and trading with other XRP-based tokens through the native decentralized exchange (DEX). The integration of AUDD into Novatti’s existing suite of payment solutions aims to serve various use cases, including remittance, payment gateway, trading pair, and Stablecoin-as-a-Service.

Novatti’s deployment of a fiat-backed stablecoin on the XRP Ledger builds upon its previous success with Ripple’s payments solution, which utilizes XRP as a bridge currency for cross-border remittances between Australia and the Philippines. With Ripple’s solution, Novatti expanded its business to 58 countries and processed billions in annual transaction value. The launch of AUDD on the XRPL aligns with Novatti’s goal to provide faster, more secure payments with reduced costs and cater to the growing demand for digital currencies.

The adoption of stablecoins is not limited to Novatti. Digital currencies issued by central banks (CBDCs) and stablecoins are attracting increasing interest and exploration within the industry, as they offer enterprises and financial institutions advantages in asset tokenization, including enhanced data management, security, and stability. Ripple’s 2023 New Value Report indicates that finance leaders in these sectors are equally or more confident in cryptocurrencies, stablecoins, and CBDCs to meet their business needs than traditional fiat currencies.

This trend marks an important turning point in the evolution of the Internet of Value. As more assets are tokenized and global liquidity increases, companies can tap into new markets, generate additional revenue streams, and provide innovative financial services to customers, ultimately driving greater financial inclusion.