Australian stablecoin issuer AUDC is launching a New Zealand dollar-backed digital currency, NZDC, targeting institutional payments and Trans-Tasman settlement efficiency.
The development, reported by International Fintech, aims to offer the New Zealand banking sector faster and more transparent settlements compared to traditional payment networks.
AUDC already operates the Australian dollar stablecoin AUDD. The company is now applying this infrastructure to the New Zealand market.
Despite ranking among the top 10 most traded currencies globally, the New Zealand dollar represents less than 0.1% of global stablecoin market capitalisation.
“Despite NZD being a top 10 traded currency globally, institutional adoption of a NZD-backed stablecoin has been virtually non-existent, creating a gap that has real costs for New Zealand businesses transacting across borders,”
said Effie Dimitropoulos, CEO, AUDC.
Targeting cross-border payments
A primary use case for NZDC is improving cross-border settlements between Australia and New Zealand. The two countries conduct more than NZ$30 billion in two-way trade.
The vast majority of this volume moves through legacy payment systems, often leaving financial institutions waiting days for transactions to clear. NZDC is built to support real-time payments around the clock.
Dimitropoulos noted that government data shows over 350,000 digital asset owners in New Zealand. She added that institutional infrastructure is becoming essential as transaction volumes grow.
Regulatory positioning
The digital asset is pegged one-to-one to fiat currency and incorporates anti-money laundering controls. AUDC registers the issuer locally in New Zealand and aligns it with the Financial Service Providers Register.
AUDC has also applied for NZDC to join the Insurance and Financial Services Ombudsman Scheme to establish compliance measures from its launch.
The rollout follows a recent industry delegation to New Zealand organised by Blockchain APAC and Blockchain NZ.
The group met with key regulators, including the Reserve Bank of New Zealand and the Financial Markets Authority.
NZDC will be available within coming weeks.
Featured image credit: Edited by Fintech News Australia, based on image by muhagraph via Magnific
