VanEck to manage reserve fund for new Agora Dollar stablecoin venture after $12 million raise VanEck to manage reserve fund for new Agora Dollar stablecoin venture after $12 million raise
The stablecoin sector has witnessed the entrance of several major traditional financial institutions, including PayPal, during the past year.
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Updated: Apr. 2, 2024 at 7:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin exchange-traded fund (ETF) issuer VanEck is set to oversee the reserve fund for a new stablecoin venture called Agora Dollar (AUSD).
The stablecoin firm raised $12 million in a funding round led by crypto venture fund Dragonfly. The firm was launched by Nick Van Eck, the son of legendary investment manager Jan Van Eck, in collaboration with Drake Evans and Joe McGrady.
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.
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 growing
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 $32.7 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.
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Posted In: Stablecoins
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$0.99992
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Ethena USDe
$1.00145
Ethena is a synthetic dollar protocol built on Ethereum that will provide a crypto-native solution for money not reliant on traditional banking system infrastructure, alongside a globally accessible dollar denominated savings instrument – the ‘Internet Bond’.
Aave
$164.963
Aave is an open source and non-custodial protocol enabling the creation of money markets.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
The VanEck Bitcoin Trust is an investment product that allows investors to gain exposure to Bitcoin through a traditional brokerage account.