Australia Greenlights First Regulated AUD Stablecoin on XRP Ledger
Australia has taken a concrete step toward institutional blockchain adoption after the Australian Securities and Investments Commission (ASIC) licensed AUDC Pty Ltd to issue a regulated, Australian dollar-backed stablecoin on the XRP Ledger.
Key Takeaways
- ASIC has licensed AUDC Pty Ltd to issue AUDD, a regulated AUD-backed stablecoin on the XRP Ledger
- Australian banks and licensed institutions can now legally transact and settle payments on-chain
- Australia’s Corporations Amendment (Digital Assets Framework) Bill 2025 is reshaping crypto regulation nationwide
- The Australian government estimates digital finance innovation could unlock up to $24 billion annually in productivity gains
The stablecoin, designated AUDD, is issued by AUDC Private Ltd – a subsidiary of Australian fintech group Novatti – and carries a full Australian Financial Services License (AFSL). That distinction matters. Unlike the wave of unregulated digital tokens that have drawn regulatory scrutiny globally, AUDD is structured as an institutional-grade payment instrument. Major Australian banks and licensed financial institutions can now legally issue, hold, and transact in digital AUD directly on-chain.
Technically, the case for building on the XRP Ledger is straightforward: transactions settle in three to five seconds at a cost of fractions of a cent. For institutions processing high volumes of payments, that efficiency gap compared to legacy rails is difficult to ignore.
Industry observers have been quick to frame the development as more than a product launch. The XRPL’s move from experimental network to formally recognized payment infrastructure represents, in their view, a structural shift in how Australia’s financial system might operate at the settlement layer.
Regulatory Overhaul Underway
The AUDD licensing does not exist in isolation. Australia is currently mid-way through a significant reworking of its digital asset regulatory framework.
The Corporations Amendment (Digital Assets Framework) Bill 2025, introduced to parliament this year, brings crypto exchanges and platforms under the same regulatory standards applied to traditional financial institutions. Platforms holding more than $5,000 per customer or facilitating over $10 million in annual transactions will be required to hold an AFSL – a threshold that pulls a substantial portion of the local crypto industry into formal oversight.
ASIC has also introduced exemptions designed to ease distribution of licensed stablecoins, extending beyond AUDD to include AUDM, issued by Catena Digital, and AUDF, issued by Forte Securities.
The Wholesale CBDC Question
While the private stablecoin market moves forward, the Reserve Bank of Australia is running its own parallel track. Project Acacia, the RBA’s wholesale central bank digital currency pilot, is testing tokenized assets and digital money for institutional use cases including cross-border transactions and wholesale debt markets. ANZ Bank is among the key participants.
The RBA has been explicit that it sees no strong case for a retail CBDC – one accessible to everyday consumers – at this stage. The focus remains squarely on wholesale efficiency between financial institutions, not consumer-facing applications.
Adding another layer to the infrastructure picture, Mastercard has demonstrated technology capable of wrapping CBDCs onto different blockchain networks, including the XRP Ledger and Ethereum, enabling secure interoperability across systems that would otherwise operate in silos.
The Stakes
The Australian government’s own estimates put the potential productivity and cost savings from unlocking digital finance innovation at up to $24 billion per year. Whether the regulatory architecture now being built is sufficient to capture that opportunity remains to be seen – but the scaffolding is going up faster than most anticipated.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 5,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
