AUDC secures AFSL licence from ASIC for stablecoin operations
Novatti Group (ASX: NOV) has announced that AUDC Pty Ltd has been granted an Australian Financial Services Licence (AFSL) by the Australian Securities and Investments Commission (ASIC) to provide non-cash payment facilities. The Novatti AUDC AFSL License represents a material regulatory milestone for the company’s approximately 45% stake in AUDC, the issuer of the AUDD stablecoin, with the holding valued at $16 million as of December 2025.
The AFSL authorises AUDC to issue and operate regulated non-cash payment facilities in Australia, reflecting the company’s established governance, compliance, and risk management frameworks. This licence removes a key regulatory barrier that previously prevented Tier-1 domestic banks and asset managers from holding or trading AUD-backed digital assets. For institutional investors who require regulatory clarity before engaging with digital finance products, the AFSL provides the compliance foundation necessary to participate in the stablecoin market.
AUDC completed a Pre-Series A funding round in 2025, raising $5 million at $0.80 per share. Novatti holds 20 million shares in AUDC as a non-controlling interest, meaning the company does not consolidate AUDC’s financial results but benefits from valuation appreciation as the stablecoin business scales.
What is an AFSL and why does it matter for stablecoins?
An Australian Financial Services Licence is a regulatory authorisation issued by ASIC that permits a company to provide specific financial services within Australia’s financial regulatory framework. For stablecoins, the non-cash payment facilities category legitimises the product as an institutional-grade financial instrument subject to oversight and compliance requirements.
The licence is particularly relevant for investors because it addresses a fundamental barrier to institutional adoption. Many regulated entities, including banks, asset managers, and superannuation funds, cannot hold unregulated digital assets due to internal risk policies and prudential requirements. The AFSL removes this constraint by bringing AUDC within the scope of Australia’s financial services regulation.
This regulatory clarity reduces counterparty risk concerns and provides institutional investors with the compliance framework they require before allocating capital to digital assets. For retail investors in Novatti, the licence enhances the quality and potential scale of the company’s AUDC investment by opening access to a significantly larger pool of capital.
AUDD’s market position and recent momentum
AUDD is positioned as Australia’s most advanced stablecoin, with availability across multiple blockchain networks and growing adoption metrics. The stablecoin is accessible on:
- Ethereum
- Stellar
- XRP Ledger
- Solana
- Hedera
- XDC Network
- Base
- Redbelly Network
In September 2025, AUDD became the first Australian dollar-backed stablecoin to be listed on Coinbase’s global retail platform, providing exposure to millions of potential users. On the Stellar network, AUDD surpassed $1.4 billion in payments volume in January 2026, demonstrating meaningful commercial traction.
The combination of multi-network support and major exchange listings indicates product-market fit and positions AUDD to benefit from broader institutional adoption now that regulatory clarity has been established. For Novatti shareholders, this operational progress supports the thesis that the company’s stake in AUDC could appreciate materially as the stablecoin scales.
Strategic value for Novatti’s payments business
Future interoperability between AUDC and Novatti’s core payments infrastructure is expected to drive innovation across multiple use cases. The regulatory framework provided by the Novatti AUDC AFSL License enables integration opportunities in cross-border payments, complex B2B settlements, and tokenised real-world asset transactions.
This optionality is valuable for Novatti shareholders because it provides exposure to the rapidly growing stablecoin sector without requiring the company to deploy additional capital or resources. Novatti retains its established payments business while maintaining a significant equity stake in a regulated digital finance entity positioned for institutional adoption.
Mark Healy, CEO, Novatti Group
“ASIC granting this AFSL continues to highlight the value created by Novatti’s incubation of AUDC, provides regulatory clarity and positions the business for scalable growth. Novatti continues to retain exposure to AUDC’s upside potential, at a time when we are seeing rapid global momentum in digital finance and the adoption of stablecoins.”
The strategic value lies in asymmetric exposure. Novatti’s operating business generates revenue from traditional payment services, while the AUDC stake provides leveraged exposure to stablecoin growth. If AUDC’s valuation increases through future funding rounds or commercial success, Novatti benefits proportionally without diluting its core business focus.
Novatti’s investment position in AUDC
Novatti holds a non-controlling interest in AUDC, meaning the company does not consolidate AUDC’s financial results on its own balance sheet. The stake represents a financial asset that can appreciate based on AUDC’s performance and valuation in subsequent funding rounds.
| Metric | Value |
|---|---|
| Novatti’s stake | ~45% (non-controlling) |
| Shares held | 20 million |
| Valuation (Dec 2025) | $16 million |
| Pre-Series A price | $0.80 per share |
| Pre-Series A raise | $5 million |
The $16 million valuation represents a material asset on Novatti’s balance sheet. If AUDC executes on its growth strategy and attracts institutional capital, subsequent funding rounds could mark up the valuation significantly, increasing the book value of Novatti’s stake. This dynamic provides Novatti shareholders with embedded optionality on the success of regulated stablecoin infrastructure in Australia.
What’s next for AUDC and Novatti
With the Novatti AUDC AFSL License now secured, AUDC is positioned to target institutional adoption without regulatory ambiguity. The licence de-risks the investment case by providing the compliance framework that Tier-1 financial institutions require before engaging with digital assets.
For Novatti, the milestone enhances the value of its AUDC stake while preserving optionality. The company retains exposure to upside potential without requiring further capital deployment, allowing management to focus on scaling its core payments business while benefiting from AUDC’s growth trajectory.
The forward-looking priorities for AUDC include:
- Institutional onboarding now possible with regulatory clarity — banks, asset managers, and superannuation funds can evaluate AUDD without regulatory ambiguity.
- Expansion of AUDD use cases across payments and settlements — the AFSL enables integration with regulated financial infrastructure.
- Potential further valuation uplift in future funding rounds — institutional capital inflows could drive subsequent funding rounds at higher valuations.
The broader macro environment supports these priorities. Global stablecoin adoption is accelerating, with institutional interest in regulated digital finance infrastructure increasing across major markets. AUDC’s regulatory compliance positions it to capture a share of this demand within the Australian market, supported by its multi-network availability and established payment volumes.
For investors in Novatti, the licensing milestone represents both validation of the company’s strategic incubation of AUDC and a foundation for potential material returns as the stablecoin business scales under regulatory oversight.
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