- VanEck to manage the reserve fund for a new stablecoin venture called Agora Dollar (AUSD)
- Agora Dollar raised $12 million in a funding round led by crypto venture fund Dragonfly
- Agora Dollar is a fully collateralized fiat-backed stablecoin aiming to upend the market with a customer-first approach
The stablecoin sector has witnessed the entrance of several major traditional financial institutions including PayPal during the past year. Agora Dollar, a new stablecoin venture, has raised $12 million in a funding round led by crypto venture fund Dragonfly.
About Agora Dollar
Agora Dollar (AUSD) is a fully collateralized fiat-backed stablecoin looking to upend the market with its customer-first perspective in a compliant structure. According to the firm, “Agora believes that digital dollars should be treated akin to public goods, returning our revenue back to the ecosystem and especially to those who drive utility and liquidity.”
The firm revealed that it is focused on regulatory compliance and is pursuing licenses where applicable. However, its services are only available in select markets outside the United States.
Agora said the cash custodian of its reserve fund will be one of the largest custodians in the world. Additionally, its reserve fund assets will be bankrupt remotely held in trust and regularly audited.
Stablecoin Market Continues Growth
Agora arrives when the stablecoin market enjoys an uptrend and entrance from major financial players like PayPal and decentralized finance projects like Aave and Ethena. According to CryptoSlate’s data, the sector’s total market capitalization has grown by 15% on the year-to-date metric to approximately $150 billion, its highest level since FTX collapsed in November 2022.
Tether’s USDT remains the dominant asset in the space, controlling more than 69% of the market. Its growth trajectory has shown no signs of slowing down as it has expanded to new blockchain networks and its market capitalization now hovers around $104 billion.
Meanwhile, Circle’s USDC is experiencing a notable resurgence amidst the bull market. Its supply increased by 22% during the year’s first quarter to $327 billion, the highest among major stablecoin issuers.
Additionally, newcomers like Ethena’s USDe synthetic dollar have garnered significant attention thanks to its appealing yield model.
VanEck to Oversee Reserve Fund
Bitcoin exchange-traded fund (ETF) issuer VanEck is set to oversee the reserve fund for Agora Dollar (AUSD). VanEck is the issuer of one of the recently approved Bitcoin ETFs in the US. Its fund, HODL, has enjoyed modest adoption since its launch, boasting $586 million in assets under management.
