Understanding AUD-denominated stablecoins

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Stablecoins are digital assets designed to hold a steady value by reference to another asset, usually a national currency. Most of the global stablecoin market is denominated in US dollars. A smaller number are denominated in Australian dollars.

This article explains what AUD-denominated stablecoins are, how they work, where they are being used, and what risks apply. It is general information only and is not a recommendation to buy, hold or use any digital asset.

What a stablecoin is, and what it is not

A stablecoin's value is not stable by design alone. Stability depends on the arrangements the issuer puts in place - typically holding reserve assets and offering holders the ability to redeem tokens for the underlying currency.

That makes the issuer central. The quality and custody of the reserves (noting reserves may not necessarily just be held as cash and may be comprised of other liquid and non-liquid assets), whether redemption is available and on what terms, and whether the issuer is subject to regulatory oversight all determine how a stablecoin behaves. These arrangements vary between issuers and should be assessed individually.

A stablecoin is not a bank deposit. It is not covered by the Australian Government's Financial Claims Scheme, and it is not guaranteed by BTC Markets or by any government.

What is AUDM?

AUDM is an Australian dollar stablecoin issued by Macropod Global (Macropod). Macropod is responsible for the token, its reserve arrangements and its redemption terms.

Where AUD stablecoins are being used

Digital asset markets

The most established use is as a trading and settlement asset within digital asset markets. An AUD-denominated stablecoin allows participants to hold and move Australian dollar value on-chain, including into pairs with US dollar-denominated stablecoins.

Payments and programmable transactions

Because stablecoins settle on a blockchain, transfers are not limited to traditional banking hours. Smart contracts can support automated settlement, escrow and conditional payments. These are capabilities of the underlying technology rather than services offered by BTC Markets.

Two practical points apply in Australia. Merchant acceptance of AUD stablecoins is currently limited. And using a stablecoin to make a payment is generally a disposal for Australian capital gains tax purposes. Individual circumstances differ, and readers should obtain their own tax advice.

Wholesale research and tokenised markets

AUD stablecoins have been used in Australian research into tokenised asset markets.

Project Acacia was a joint research initiative of the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre, supported by ASIC, APRA and Treasury, and conducted under regulatory relief granted by ASIC. It examined wholesale tokenised asset markets. Participants completed 20 use cases across a range of asset classes and settlement methods, including central bank settlement balances, a pilot wholesale central bank digital currency, tokenised bank deposits and stablecoins. The RBA and DFCRC published their final report in May 2026.

Macropod led two of the 20 completed use cases, a tokenised managed fund and a tokenised corporate bond, both settled in AUDM. Reported results indicate the issuance and a subsequent secondary transfer completed end to end in a matter of minutes. Comparisons with conventional settlement timeframes reported at the time were estimates offered by participants rather than independently verified benchmarks.

Risks to understand

Anyone considering holding an AUD-denominated stablecoin should understand that:

• Tokens traded on secondary markets may not maintain their value against the Australian dollar. Stablecoins can and do trade away from their reference price.
• Value depends on the issuer's reserves, custody arrangements and financial position. If the issuer fails, holders may not be able to redeem.
• Redemption may be subject to eligibility criteria, minimums, fees or delays, or may not be available to all holders.
• Blockchain transactions are generally irreversible, and smart contracts carry technical and security risk.
• Stablecoins are not bank deposits, are not covered by the Financial Claims Scheme, and are not guaranteed by any government.
• The regulatory treatment of stablecoins in Australia is changing, and future developments may affect how these assets can be issued, held or used.

Where to find more information

Macropod publishes information about AUDM, including its reserve and redemption arrangements, on its website: macropod.com/audm

Reference: Macropod Combined Financial Services Guide and Product Disclosure Statement

Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). It is general information only. It does not consider your objectives, financial situation or needs, and it is not a recommendation or opinion with respect to any digital asset, including AUDM. It is not a substitute for professional advice, and we recommend you obtain independent financial, legal and tax advice before making any decision in relation to the matters discussed.

BTC Markets does not issue AUDM and does not guarantee its value, its reserve arrangements or its redemption. AUDM is issued by Macropod. Digital assets are volatile and carry risk, including the risk of total loss.

The information does not purport to be complete or accurate or to contain all of the information a person may require to make a decision. References to third-party research projects, pilots or participants are descriptive only and do not constitute an endorsement of BTC Markets, Macropod or any digital asset by any government agency or regulator.

To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind arising in respect of the information contained (or not contained) on this page, or arising from a person relying on any information or statement contained on this page. The information is only intended for recipients in Australia and cannot be reproduced without our prior written permission.