Opportunity

Circle’s USDC has proven the value and business case for fiat-backed stablecoins done right. Naturally, there is an opportunity to introduce stablecoins in more markets across the globe.

Stablecoins are 1-to-1 backed digital representations of fiat currencies like EUR, GBP or USD. Not only do stablecoins introduce stable digital currencies for trading or money transfer but they also serve as a platform for more use cases to be built on. Stablecoins are also very powerful when deployed in decentralized applications. They can be used across web 2, web 2.5 and web 3 use cases alike.

The Stellar blockchain is a great fit for stablecoins. It is designed to allow for the tokenization of assets, such as fiat currencies, in a secure and easy way, with the benefits of low transaction costs, fast processing in seconds, and a mission-oriented mandate to solve real-world problems.

About

Novatti (ASX:NOV) is a leading fintech that enables businesses to pay and be paid from any device, anywhere. With over 20 years of experience and active partnerships across 58 countries, the company is a home-grown Australian success story with a fast-growing global presence.

Novatti has identified stablecoins as a key opportunity to expand its reach and enable more fintech and payment use cases. AUDD, short for Australian Digital Dollar, is currently issued on the Stellar network and is available to buy, sell and withdraw on get.audd.digital

“Stablecoins have proven to be an easy way for the mass market to engage with the Stellar network across a number of use cases – but having usable wallets is a prerequisite for this engagement.” said Mark Heynen, VP Partnerships at Stellar Development Foundation (SDF).  “Rehive offers an easy way for companies to accelerate their wallet development with turnkey tools that are already fully integrated into the Stellar network and using the interoperability standards that maximize what end users can do.”

Problem

Launching a stablecoin is easier said than done. There are multiple pieces to get right: compliance, licensing, on-ramps, off-ramps, custody of deposits, reserve management, stablecoin issuance, and, of course, the applications that bring everything together.

Solution

Novatti has the expertise and relationships needed to solve the region's specific challenges, like compliance and licensing in Australia. A missing piece, however, was an application that is integrated with the Stellar network. Building this would be expensive and time-consuming for Novatti.

That’s where Rehive comes in. Rehive has created a fintech application builder that makes it easy to brand and launch a white-label app with the key stablecoin features out of the box:

• Verification – Individuals and businesses can register and complete the onboarding process to get verified.
• Deposit – Users can deposit AUD to load their balance.
• Exchange – Users can easily buy AUDD with AUD or sell AUDD for AUD.
• Withdraw – Users can withdraw AUD to their bank account.
• Send – Users can send AUDD to a friend’s email address or to another on-chain Stellar address.

Not only does Rehive help companies like Novatti roll out new fintech apps quickly, but Rehive also makes it easy for such companies to generate revenue from day one, while providing parameters to help companies operate within their compliance requirements. Rehive has customizable user tiers, fees, and limit settings to help companies control their business requirements from their admin dashboard.

“What stood out about Rehive was their understanding of what it takes to launch a digital currency application,” stated Michaela Juric, Head of Blockchain and Digital Assets at Novatti. “The operation of such services can become quite intricate and complex. In some cases, it can take years to get things right. By working with Rehive and our partners, we were able to reduce those years to a matter of weeks.”

What’s next

Like other prominent stablecoins used today, such as USDC, Novatti is following a similar playbook to launch AUDD.

The first phase is to drive the liquidity and utility of AUDD with the goal of improving the experience for individuals and businesses looking to buy, sell, send and withdraw AUDD. A key part of this phase is building trust through transparency and establishing standards with the relevant regulators, all of which Novatti is actively working on. The utility of AUDD becomes more compelling when there is sufficient liquidity for users to convert and transact in different assets on the Stellar network.

Naturally, the utility of AUDD will be enhanced once support is added on multiple blockchains.

As a second phase, AUDD Digital is greatly positioned as a direct-to-market fintech app with value-added features spanning beyond its stablecoin. For example, businesses will be able to use the application to send invoices and process online payments, while individuals will be able to instantly make AUDD payments, make in-app purchases, spend online and more.

Finally, the goal is to transform AUDD Digital into a platform on which other fintechs and businesses can easily build on, by creating new opportunities to connect with customers, all within the platform.

“With AUDD Digital, our goal is to continue introducing products and services that enable the utility of AUDD beyond the realm of De-Fi and Web3. We believe stablecoins are the bridge between the traditional and blockchain worlds. By encouraging this connection, we can showcase the efficiencies AUDD has to offer and ultimately increase the adoption of stablecoins,” confirmed Juric.

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