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FAQ

General

AUDD is Novatti’s Australian Dollar (A$) backed stablecoin which is a type of digital currency. This will be reviewed and attested regularly by our external auditors.

AUDD will only be minted and distributed upon confirmation of the equivalent A$ being received/present in the custodial bank account, Novatti subsidiary AUDC PTY LTD. For security and best practice, AUDD is not pre-minted, or minted based on credit.

AUDD is a multichain solution, meaning it is available on more than one blockchain. AUDD is is currently natively deployed on Ethereum, Stellar and XRP Ledger. It will be deployed across more blockchains on a case-by-case basis.

AUDD is issued on multiple blockchain technologies taking a ‘blockchain agnostic’ approach, we do not limit AUDD to one market or use case – much like you would not limit other payments to bank transfers or credit card payments.

AUDD will function over multiple blockchain technologies already on Stellar, XRP Ledger, and Ethereum. We intend to add AUDD to more blockchains on a case-by-case basis.

AUDD’s real currency backing will be fully transparent. During Q1 2024, it is planned that our website will show the monthly audit results where transaction data on the blockchain is reconciled with the actual A$ fiat currency holdings.

The renaming was the result of a trademark filing complication. Novatti had already registered AUDD alongside AUDC, so it was chosen as the logical choice to replace it.

Stability and Security

AUDD is 1:1 backed by Australian Dollars or short dated Treasury Notes held by the issuer, AUDC PTY LTD.

Some key differences are that:

  1. CBDC is issued by a central bank, whereas stablecoins such as AUDD are issued by financial services institutions, and
  2. In a technology sense AUDD is validated through a public blockchain, whilst CBDCs will usually be on private blockchains.
  3. CBDCs aim to maintain monetary control, while stablecoins serve multiple purposes, including digital payments and use in the digitally native ecosystem.

eAUD (Australia’s proposed CBDC) for example, will be centralised in nature, due to the restrictions or permissions placed upon it by the blockchain upon which it operates. The industry does not anticipate the release of eAUD for at least another five years and the current expectation is that it will be a wholesale token, not a retail product.

In contrast, we see that industry stablecoins, such as AUDD, will focus on solving business use cases and driving the digital transformation of payments.

AUDD is 1:1 backed by Australian Dollars, through cash or short dated Treasury Notes, held in Australian Financial Institution accounts by the issuer, AUDC PTY LTD.

As AUDD will be minted on an ‘as needed’ basis, the storage of AUDD by AUDC PTY LTD for prolonged periods of time will not be required. The receiving entity purchasing the stablecoin (taking ownership of AUDD) is responsible for the custody of the AUDD they acquire.

You can find all AUDD activities on the Stellar explorer address here.

The official Ethereum contract address for AUDD can be found here.

The official XRP Ledger address for AUDD can be found here.

Have more questions? Head to our AUDD Digital Knowledge Base for more!