The issuer of an Australian dollar stablecoin is launching a New Zealand dollar stablecoin to address a gap in the country’s digital asset infrastructure, despite the NZD being one of the world’s 10 most traded currencies.
AUDC’s NZDSC builds on the success of AUDD, which has processed more than $2 billion in transactions to date.
In March, New Zealand’s financial regulator declared NZDD stablecoin, issued by ECDD and pegged to the New Zealand dollar, was not a financial product under the FMC Act.
At the time, law firm MinterEllisonRuddWatts said the designation provides an important step toward regulatory clarity on the treatment of stablecoins under the FMC Act and “will be of significant interest to those operating in, or considering entry into, this rapidly evolving space.”
According to AUDC chief executive Effie Dimitropoulos, New Zealand lacks a bank-grade, fully attested NZD stablecoin, leaving it behind jurisdictions such as the United States, Europe and Australia in the development of digital asset infrastructure.
“Government data in New Zealand has identified that there are over 350,000 digital asset owners in New Zealand, undertaking around 57 million transactions valued at NZ$36 billion,” AUDC CEO, Effie Dimitropoulos, said.
“These numbers are growing rapidly and it’s important that the infrastructure is in place to support it, particularly at an institutional level.”
Meanwhile, stablecoins are gaining broader acceptance within global financial markets. According to the Citi Institute’s Tokenisation 2030 report, the stablecoin market is projected to reach US$1.9 trillion by 2030 in its base-case scenario, driven by demand for on-chain settlement and programmable payments.
NZDSC is designed to support real-time, 24/7 payments, reducing settlement times from days to near-instant.
“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. NZDSC, in conjunction with local banking partners, is designed to close it.”
Dimitropoulos said the launch would support institutional-grade digital payments and improve settlement efficiency across the Trans-Tasman corridor, one of the region’s busiest trade routes.
“Our two-way trade is valued at more than NZ$30 billion, where the vast majority of this is transacted on outdated payment rails that are leaving banks and institutions waiting days for settlement and payment to go through.”
NZDSC has been structured to operate within New Zealand’s regulatory framework, with the issuer registered locally and aligned with Financial Service Providers Register requirements.
The platform incorporates AML/CTF controls and has applied to join the Insurance & Financial Services Ombudsman Scheme.
The stablecoin is fully backed by fiat reserves and pegged 1:1 to the New Zealand dollar. It will leverage AUDC’s existing governance, compliance and treasury infrastructure, alongside its established banking and custody arrangements.
The launch follows a recent industry delegation to New Zealand organised by Blockchain APAC and Blockchain NZ, which included Dimitropoulos as a representative of Australia’s regulated stablecoin sector.
Held during New Zealand’s Budget week, the delegation conducted 32 meetings across Auckland and Wellington with banks, regulators, infrastructure providers, superannuation funds, law firms and government stakeholders.
Discussions included 13 politicians from across the political spectrum, as well as representatives from the Ministry of Business, Innovation and Employment (MBIE), Ministry of Foreign Affairs and Trade (MFAT), Inland Revenue Department (IRD), Financial Markets Authority (FMA) and the Reserve Bank of New Zealand.
“The breadth of political engagement was a pleasant surprise. Across four parties, the questions weren’t about whether digital assets have a role in New Zealand’s future but about how to make that future work for ordinary New Zealanders,” Dimitropoulos said.
“That cross-party curiosity is exactly the foundation needed to build something durable, and it left us energised.”
NZDSC is expected to become available within the coming weeks.
