Klevo Rewards Ltd (ASX:KLV) has entered into a strategic partnership with global digital asset platform Bybit to develop and launch an Australian dollar-backed stablecoin, KLV Coin (KLVAUD), alongside an integrated payments and rewards ecosystem.
The initiative will be delivered through Klevo’s wholly owned subsidiary Fly Wallet Pty Ltd and is designed to combine digital assets, payments infrastructure and loyalty rewards into a single platform. Management said the partnership positions Klevo to access a large and growing global user base while advancing its embedded finance strategy.
KLVAUD is expected to function as both a store of value and a rewards mechanism within the Klevo ecosystem, enabling users to earn and spend digital rewards through everyday transactions.
Stablecoin model linked to everyday spending
Under the proposed model, users will be able to acquire KLVAUD either through direct purchase or by earning rewards when transacting with participating merchants using a co-branded Klevo/Bybit Mastercard.
Rewards will be generated through cashback, merchant incentives and loyalty programs, with the key differentiator being the ability to spend KLVAUD anywhere Mastercard is accepted, rather than being limited to closed loyalty networks.
Fly Wallet will issue the stablecoin, which is intended to be fully backed 1:1 by Australian dollar reserves held with an authorised deposit-taking institution. The structure is designed to enable seamless conversion between digital assets and fiat currency for payments.
Bybit to support global distribution and adoption
Bybit is expected to act as a global distribution partner, supporting custody, trading and onboarding while facilitating access to KLVAUD across its international user base.
The partnership also includes plans to launch a co-branded Mastercard that allows users to convert digital assets into fiat in real time at the point of sale, while automatically linking transactions to rewards accumulation.
Klevo said the integrated model is intended to create a closed-to-open loop ecosystem, where users can earn, redeem and reuse rewards, and merchants benefit from increased customer engagement and retention.
Early-stage agreement with risks and next steps
The parties have entered into a non-binding heads of agreement and intend to negotiate definitive agreements covering distribution, platform licensing and existing arrangements.
A coordinated global marketing rollout is planned, supported by a minimum annual spend of $500,000 to drive user acquisition and merchant engagement.
Klevo said the initiative remains at an early stage and is subject to regulatory, counterparty and execution risks, with no certainty that definitive agreements will be finalised or that the program will proceed.
The company added that initial development costs are expected to be funded from existing working capital, with the potential for additional capital raising as the project progresses.