Novatti, an award-winning global software technology, utility billing and payment services provider, today announced that is launching the Novatti AUD Utility Token, a token on the Stellar Network that is one-to-one backed by the Australian dollar (AUD).
Held in trust by Novatti, one Novatti AUD Utility Token will always be equivalent to one Australian dollar.
With the Novatti AUD Utility Token, consumers and institutions will be able to use one platform to instantly accept and settle payments in AUD, as well as easily access foreign exchanges via a lightning-fast global network.
Novatti’s reserve holdings will be held by Novatti's licensed subsidiary Flexewallet Pty Ltd, which has an Australian Financial Services License for non-cash payments and is registered as a Remittance Network Provider with the regulator AUSTRAC.
As the Novatti AUD Utility Tokens are tethered to Australian dollars, the tokens in circulation will always have an equal matching reserve of AUD. This gives consumers and institutions the freedom to use a digital currency and the Stellar Network without fear of fluctuations in the underlying value of the digital currency.
Novatti will be the first AUD anchor on the Stellar Network. An anchor is an entity entrusted 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 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.
The service is currently in beta, with the official launch scheduled for 19 November 2018.