Injective announced the launch of AUSD, its first native stablecoin, to enhance transactional reliability and liquidity on its platform.
AUSD: A Reliable Stablecoin?
AUSD is backed by a diverse range of assets, including cash, U.S. Treasury bills, and reverse repurchase agreements. Reserve management is conducted by VanEck, while State Street provides custody services. Each AUSD token is designed to be redeemable for one U.S. dollar, giving users a sense of stability. Reportedly, users will be able to acquire, trade, and sell AUSD without bridging issues, increasing its availability across decentralized applications (dApps) like DEXs, staking, and lending.
Market Context and Growth
Since inception, AUSD's circulating supply surged over $65 million, with daily trading volumes beyond $15 million across Ethereum, Avalanche, and Sui blockchains. The stablecoin market has become the third largest sector in the cryptocurrency ecosystem, valued over $170 billion. AUSD’s entry reinforces the dominance of U.S. dollar-backed stablecoins.
Advantages of Injective's Infrastructure
Injective ensures low transaction fees and fast throughput, enabling users to execute transactions in real-time. The platform achieved over 1 billion on-chain transactions this year. Recently, Paxos introduced Wrapped $USDL (wUSDL) to Injective, a stablecoin offering a 1:1 backing for each dollar held in reserves. In September, Injective launched the BUIDL Index, the world's first perpetual market tracking BlackRock's $BUIDL Fund.
The launch of AUSD on the Injective platform underscores the significance of USD-backed stablecoins, offering users new liquidity opportunities and reliable transactions in the DeFi ecosystem.
