AUDD | Bluechip

AUDD by AUDC is backed exclusively with Australian Dollar (AUD) bank deposits held in custody by the Westpac Banking Corporation and Banking Circle. Both custodians are regulated financial institutions in Australia.
AUDD is issued by AUDC, a company incubated by the Novatti Group in Nov 2022. The issuer holds an Australian Financial Services License (AFSL) permitting the issuance and operation of non-cash payment facilities.
Reserve assets with the Westpac Banking Corporation are in a bare trust with an independent trustee and likely segregated from the issuer’s corporate funds. However, assets with other custodians may not be segregated.
The bare trust structure is not sufficient to claim full bankruptcy remoteness. The trustee plays a passive role by only holding the legal title to the assets and acting on the issuer’s instructions. The trust also needs to hold assets for the benefit of AUDD holders, and not the issuer.
Novatti Group publishes monthly attestations of reserves backing AUDD. However, the auditor only performs agreed-upon procedures to report facts and does not express an opinion or assurance conclusion.
Suitability - AUDD is most suitable for (a) Australian institutional users seeking to send or receive payments denominated in AUD, and (b) Australian institutional users seeking passive exposure to AUD in an onchain format.

Any of the following actions by Novatti Group can lead to a rating upgrade.

Clearly stipulate a transparent and reasonable timeline for processing redemptions.
Convert monthly attestations from agreed-upon procedures to assurance engagements.

AUDD is backed exclusively by AUD bank deposits. Reserves are held at Banking Circle and Westpac Banking Corporation.

Reserves at Westpac are held in segregated accounts under a bare trust structure. However, this may not be sufficient to establish full bankruptcy remoteness.

AUDD is issued by AUDC, a company incubated by the Novatti Group in Nov 2022. Since then, Novatti has reduced its stake in the issuer to less than 50%.

The issuer is led by Effie Dimitropoulos as the CEO of AUDC and Mark Healy as the CEO of the Novatti Group.

This factor evaluates technical implementation using sub-factors that cover smart contract quality, oracle & bridge risk, supply integrity, and more.

This rating was published under a previous version of our methodology, which did not assign a standalone score to this factor.

This factor evaluates decentralization using indicators such as regulatory oversight, asset custody, governance controls, and more.

This stablecoin is not suitable for users who prioritize censorship resistance over regulatory protection. Decentralization is not a key objective for the issuer.

AUDD is issued by AUDC which holds an Australian Financial Services License (AFSL) permitting the issuance and operation of non-cash payment facilities.

AUDC publishes monthly attestations of reserves backing AUDD. However, the auditor only performs agreed-upon procedures.

This factor evaluates external feedback using indicators like prediction markets, social sentiment, perpetual futures, and more.

Currently, we do not assign a standalone score to this factor. An independent assessment of external feedback will be included in future iterations.