Novatti Group quite recently confirmed that its deal with Ripple and Stellar to build its AUDC stablecoin was on. The Australian company plans to issue the same on the XRP Ledger and Stellar Chain.
Talking about the same in a recent interview, Novatti Group’s CEO and Managing Director Peter Cook said,
“We’re building a multichain stablecoin service initially on both Ripple and Stellar chains. In fact, what’s the great thing is both Ripple and Stellar are largely funding the development work and even some of the marketing work.”
The AUDC stablecoin
The stablecoin set to launch would be backed 1:1 against the Australian Dollar, quite similar to how Tether’s USDT and Circle’s USDC are backed by the US Dollar. As such, market participants would be able to purchase 1 AUDC for 1 AUD and then leverage its utility by sending the AUDC to a digital wallet through a blockchain network without international transaction fees.
Novatti, however, intends to make a profit on the conversion, and merchant fee. On the other end of the transaction, the coin can either be stored in a crypto wallet or cashed out whenever needed.
Highlighting the essence of the partnership, Peter Cook said,
“We strongly believe that demand for the use of digital currencies will only increase going forward. Deploying our AUDC stablecoin on the XRP Ledger will help Novatti capture this growing demand and, in turn, position us to deliver new revenue streams.”
Ripple and Stellar’s intertwined past
Both Stellar and Ripple have been co-founded by Jed McCaleb and are deemed to be rival companies, per se. Ripple was initially launched by McCaleb along with Chris Larsen, but soon after, McCaleb and the rest of the team at Ripple started having major disagreements.
Resultantly, McCaleb decided to leave. Scripting another chapter in his crypto books, he, along with Joyce Kim, founded Stellar in 2014. Novatti’s latest partnership deal would now bring both rivals under the same roof.
As far as the price action is concerned, the native crypto tokens of both the projects noted a mild incline of 1% each on Thursday and were trading at $0.4036 [XRP] and $0.141 [XLM] at press time.