Australia has the tech, the talent, and the regional influence to become a notable player in the next wave of digital finance. However, the largest economy in Oceania, with a GDP of over AUD 2.7 trillion (USD 1.8 trillion), is still sitting on the sidelines when it comes to Australian dollar-backed stablecoins.
The total stablecoin transaction volume surpassed USD 35 trillion over the past year, according to data from Visa. Of this tally, the Australian dollar accounts for less than 0.01%.
This is not just a missed opportunity for local fintechs and exporters – it’s a wake-up call for the country.
AUDD and the Breakthrough
A survey in February showed that 31% of Australians own or have owned crypto – a sign of growing confidence in digital assets. The growth in stablecoin market cap from $27 billion at the start of 2021 to $257 billion by mid-2025 is proof enough for Aussies and our 26 million-strong, tech-hungry population.
With the launch of the AUDD stablecoin on Hedera, a public blockchain that uses proof-of-stake, Australia has a shot at entering the competition in digital finance. And it’s not just Hedera – AUDD, launched in November 2022, but it is also available on leading blockchains, including Ethereum, Solana, XRP Ledger, Stellar, and XDC.
Beyond cross-chain functionality, AUDD leaned into absolute regulatory compliance while others hesitated. For example, the AUDN project was shut down by National Australia Bank (NAB) due to “low demand” last June. Australia and New Zealand Banking Group’s A$DC never made it past the pilot phase. One of the main reasons it failed was that it was designed only for a handful of big institutional players, making A$DC very niche.
By contrast, AUDD is a fully regulated stablecoin issued by Novatti, an ASX-listed Aussie company. Novatti’s goal is simple: build a payments infrastructure that local businesses, exporters, and even government departments can actually use.
Related: Stablecoins Over CBDCs: Will Australia Follow the US Regulatory Drift?
From Experiments to Real-World Payments
Stablecoins have shifted from merely acting as a hedge against crypto volatility to real-world payment tools.
Smart retail and institutional investors aren’t investing in fiat-pegged tokens to substitute volatile altcoins, but rather, they want programmable money. And thanks to the smart-contract capabilities of many leading blockchains, like Ethereum, Solana, and Hedera, to name a few, this is now possible.
Simply put, savvy investors want infrastructure, not speculation.
Think invoices that settle themselves once shipments leave the port, or milestone-triggered payments. These tools could completely transform how businesses handle cash flow for a country like Australia.
When it comes to speed and cost, businesses wouldn’t need to wait days for settlements or pay hefty fees. Some of the slower blockchains even confirm transactions in under two minutes – Ethereum, for instance, usually processes them in 15 seconds to two minutes on average.
With AUDD, it’s no longer a question of if stablecoins will take off here – it’s when.
Australia Needs Collaboration, Not Competition
Why have some AUD-pegged stablecoins fallen flat? Because they were either too cautious with compliance or focused on exclusive deals for big institutions, missing the wider market.
This isn’t a turf war between government agencies and fintech startups. Nor should rivalry block innovation. If local fintechs try to go it alone, they’ll struggle. If regulators stay hands-off, Australia will fall behind.
The launch of AUDD on Hedera is a pivotal moment that could redefine how AUD payments work. Australia will finally see what it’s been missing when exporters use stablecoins for invoices, or when banks embed programmable AUD into international payment rails.
This isn’t the time for Australia to keep relying on outdated banking systems. We should build strong frameworks, test smart pilots, and let the AUD step confidently into the digital age.
Related: Arthur Hayes Says Bank Stablecoins to Unlock $6.8 Trillion in U.S. Debt Sales
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