Bitcoin exchange-traded fund (ETF) issuer VanEck is about to supervise the reserve fund for a brand new stablecoin enterprise known as Agora Greenback (AUSD).
The stablecoin agency raised $12 million in a funding spherical led by crypto enterprise fund Dragonfly. The agency was launched by Nick Van Eck, the son of legendary funding supervisor Jan Van Eck, in collaboration with Drake Evans and Joe McGrady.
VanEck is the issuer of one of many just lately authorised Bitcoin ETFs within the US. Its fund, HODL, has loved modest adoption since its launch, boasting $586 million in belongings underneath administration.
Agora Greenback
AUSD is a completely collateralized fiat-backed stablecoin trying to upend the market with its “customer-first perspective in a compliant construction.”
In response to the agency:
“Agora believes that digital {dollars} must be handled akin to public items, returning our income again to the ecosystem and particularly to those that drive utility and liquidity.”
The agency revealed that it’s centered on regulatory compliance and is pursuing licenses the place relevant. Nonetheless, its companies are solely obtainable in choose markets outdoors america.
Agora mentioned the money custodian of its reserve fund will probably be one of many largest custodians on this planet. Moreover, its reserve fund belongings will probably be bankrupt remotely, held in belief, and frequently audited.
Stablecoin market rising
Agora arrives when the stablecoin market enjoys an uptrend and entrance from main monetary gamers like PayPal and decentralized finance tasks like Aave and Ethena.
In response to CryptoSlate’s knowledge, the sector’s whole market capitalization has grown by 15% on the year-to-date metric to roughly $150 billion, its highest stage since FTX collapsed in November 2022.
Tether’s USDT stays the dominant asset within the house, controlling greater than 69% of the market. Its development trajectory has proven no indicators of slowing down because it has expanded to new blockchain networks, and its market capitalization now hovers round $104 billion.
In the meantime, Circle’s USDC is experiencing a notable resurgence amidst the bull market. Its provide elevated by 22% through the 12 months’s first quarter to $32.7 billion, the very best amongst main stablecoin issuers.
Moreover, newcomers like Ethena’s USDe artificial greenback have garnered vital consideration because of its interesting yield mannequin.
