Klevo teams up with Dubai-based Bybit to develop “KLVAUD,” an Aussie dollar-backed stablecoin

Klevo Rewards (ASX:KLV) is partnering with global digital asset platform Bybit to develop and launch a “KLV Coin,” an Australian dollar-backed stablecoin, as well as build an integrated payments and rewards ecosystem.

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The partnership, Klevo told shareholders today, will position the Aussie company “at the forefront of the convergence between real-time rewards, digital assets, and payments infrastructure” to unlock a global user base.

The partnership also includes a coordinated go-to-market strategy with a minimum annual marketing commitment of A$500,000 to bring in new users.

Under the new proposed model put forward by Klevo and Bybit this week, financial users will be able to acquire the stablecoin through either direct purchase via Bybit and other channels or earn it as card-linked cashback when transacting with participating merchants using the upcoming Bybit KLV Mastercard.

The partnership’s coin will be called “KLVAUD” once it eventually launches and will then function as both “a store of value and a rewards instrument.”

The KLVAUD stablecoin will be pegged 1:1 to the Aussie dollar. To ensure stability and transparency, Fly Wallet intends to maintain reserves in segregated accounts with an Authorised Deposit-Taking Institution.

Any reserves needed for the app are expected to be funded by Bybit (which is based in Dubai) as part of the necessary Mastercard collateral.

Unlike traditional “closed” loyalty points, KLVAUD is intended to be spendable anywhere Mastercard is accepted, converting digital assets to fiat currency in real time at the point of sale,” Klevo explained today.

KLV has been 2.7cps today, up +8%.

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The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.