ASIC Licenses AUDD Stablecoin on XRP Ledger, First Government-Licensed On-Chain Token
Australia’s ASIC granted AUDC Pty Ltd an AFSL license to operate AUDD stablecoin directly on the XRP Ledger, making AUDD the first government-licensed stablecoin transacting on-chain. Previous February partnerships with Deutsche Bank, Aviva and Société Générale failed to boost XRP, since enterprise software integrations don’t generate on-chain token demand.
1. ASIC Grants AFSL License to AUDD
Australia’s financial regulator granted AUDC Pty Ltd AFSL No. 700123 to provide AUDD stablecoin as a regulated non-cash payment facility on the XRP Ledger. This makes AUDD the first government-licensed stablecoin transacting directly on-chain under Australian law, enabling banks to settle payments within a clear legal framework.
2. Contrast with Earlier Ripple Partnerships
Ripple’s February integrations with Deutsche Bank, Aviva, Société Générale’s EURCV, Zand and Figment all leveraged enterprise software and off-chain messaging without on-ledger token settlement. None of these deals have driven on-chain XRP demand or price appreciation, as institutional users transact primarily in fiat or stablecoins off-chain.
3. Stablecoin Mechanics and XRP Demand
AUDD tokens are backed 1:1 by segregated Australian dollars at tier-one banks with regular third-party audits. Institutions using AUDD will settle in AUDD itself, with XRP involved only as a negligible transaction fee (0.00001 XRP), maintaining minimal direct token demand.
4. Implications for On-Demand Liquidity Bridge Use
Having regulated stablecoins in USD, EUR and now AUD on XRPL paves the way for On-Demand Liquidity corridors to scale. With AUDD on one end, ODL can convert AUD to XRP to another currency, creating actual token flows if institutions adopt bridging for real-time cross-border transfers.