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 beneath administration.
Agora Greenback
AUSD is a completely collateralized fiat-backed stablecoin seeking to upend the market with its “customer-first perspective in a compliant construction.”
In accordance with the agency:
“Agora believes that digital {dollars} needs to 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 targeted on regulatory compliance and is pursuing licenses the place relevant. Nonetheless, its providers are solely accessible in choose markets exterior the USA.
Agora stated the money custodian of its reserve fund might be one of many largest custodians on the planet. Moreover, its reserve fund belongings might 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 initiatives like Aave and Ethena.
In accordance with 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 degree 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% in the course of the 12 months’s first quarter to $32.7 billion, the best amongst main stablecoin issuers.
Moreover, newcomers like Ethena’s USDe artificial greenback have garnered important consideration because of its interesting yield mannequin.
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