AUDT is a secure, compliant Australian dollar-backed token that allows users to enjoy the benefits of both blockchain transactions and price stability.
Stablecoins have become an important part of the crypto landscape. In fact, they are one of the most critical components of the DeFi space, enabling users to trade, invest, and earn returns without exposure to the volatility for which cryptocurrencies like BTC and ETH are notorious.
Stablecoins come in different forms, and take different approaches to maintaining their value against a specific fiat currency (often the US dollar):
- Fiat-backed stablecoins are issued by a centralised company that theoretically holds $1 of cash for every stablecoin token in existence. Fiat-backed coins tend to maintain their ‘peg’ to the underlying currency well, because they can be redeemed for the cash that backs them. Examples include USDT, USDC, and USDP (formerly PAX). However, there are a number of concerns with them:
- Users are forced to trust the issuing company, so compliance is extremely important.
- Issuers often back the coins with different assets, which may be hard to convert to cash if stablecoins are redeemed in large volumes.
- Some stablecoin issuers are not transparent about their asset holdings, making it hard to know whether all tokens can be redeemed for their full value.
- Decentralised stablecoins like Dai are backed by at least $1 worth of crypto collateral. Individual users can generate the coins by locking assets in a Vault. If the value of the crypto collateral falls below a certain point, the contents of the Vault are sold to ensure the system does not accrue bad debt. Because there is no centralised issuer to redeem stablecoins for $1, decentralised stablecoins tend to track the dollar less closely, though maintain their value over time.
- Algorithmic stablecoins are not backed by any assets, with their value instead regulated by algorithms that adjust supply in response to price fluctuations. They are still fairly new and experimental, and may not reliably hold their peg to the dollar.
AUDT: A Compliant, AUD-Backed Token
AUDT, or Australian Dollar Token, is a fiat-backed stablecoin. Users can easily and quickly acquire AUDT using TimeX, an Australian crypto exchange. Verified users send dollars from their Australian bank account to the AUDT company bank account. Funds are immediately converted to AUDT tokens, and credited to the user’s blockchain wallet.
Once received, AUDT can be traded for other cryptocurrencies on TimeX, held indefinitely, or sent to other users, anywhere in the world. Tokens can be redeemed at any time by sending tokens back to the company blockchain address, with funds being credited to the user’s bank account upon receipt.
As a fiat-backed coin, AUDT holds its value closely with the Australian dollar. Moreover, as Australian blockchain companies, TimeX and AUDT are regulated by AUSTRAC, the country’s financial intelligence agency, ensuring full compliance and best practice. Audits of AUDT’s AUD holdings are regularly conducted by AUSTRAC-registered third-parties and the results published on the AUDT website for transparency. Funds are held in a licensed Australian bank, again ensuring safety and allowing users to hold, trade and redeem AUDT with a high degree of confidence.
Safe, Stable, Simple
AUDT is the ideal stablecoin for Australian users who want to hold value on the blockchain but who don’t want to worry about fluctuating crypto prices. AUDT can be traded for other coins (including other stablecoins) whenever necessary, and as a blockchain token can be moved around the crypto ecosystem easily.
AUDT is therefore one of the only stablecoins that can be trusted to maintain its value and be fully convertible back to cash whenever the user requires.
Find out more at https://audt.to.