Agora is launching the AUSD stablecoin, backed by cash and short-term US bonds, after a successful $50 million funding round.
Investments and Goals of Agora
Agora raised 50 million dollars in its Series A funding round led by the investment fund Paradigm. This investment follows a previous round that raised 12 million, totaling 62 million dollars. Agora's CEO, Nick van Eck, stated that the company's goal is to transform the stablecoin market and provide high liquidity and transparency to businesses worldwide.
Features of AUSD Stablecoin
AUSD will be collateralized 1:1 by cash and short-term US Treasuries, safeguarded by State Street and VanEck. This approach may help mitigate risks by avoiding direct exposure to volatile crypto-assets. Van Eck noted, "We are building a network from the ground up, enabling any business to issue branded digital dollars on AUSD with full transparency and efficiency."
Market and Competitiveness
Market reactions to the announcement of AUSD remain muted, with some activity seen in developer and community discussions. AUSD is expected to shift dynamics in the USD-backed stablecoin landscape, including USDT and USDC, due to a focus on regulatory compliance and liquidity. According to CoinMarketCap, AUSD is valued at $0.99, with a market cap of over 128 million dollars.
The successful launch of AUSD may influence financial markets by increasing stablecoin adoption in traditional payment systems. Agora's model, similar to other successful projects, could lead to increased liquidity in decentralized ecosystems.
