On October 31, 2024, the Injective platform announced the launch of its first native stablecoin, AUSD, fully backed by U.S. dollars. Aimed at improving transactions within the Injective ecosystem, AUSD integrates to support liquidity between decentralized and traditional financial markets.
AUSD Features and Reliability
AUSD is backed by a diverse range of assets, including cash, U.S. Treasury bills, and reverse repurchase agreements. Reserve management is entrusted to VanEck, a renowned asset management firm, with custodial services by State Street. Each AUSD token is redeemable for one U.S. dollar. Reports indicate that users can acquire, trade, and sell AUSD without experiencing bridging issues, allowing a wider integration within decentralized applications like DEXs, staking, and lending protocols.
Market Context and Stablecoin Growth
Since its inception, AUSD’s circulating supply has risen to over $65 million, with daily trading volumes exceeding $15 million across blockchains like Ethereum, Avalanche, and Sui. The stablecoin market is now the third-largest sector in the crypto ecosystem, valued at over $170 billion.
Advantages of Injective's Infrastructure
Recent announcements confirmed that Injective’s low transaction fees and fast throughput enable real-time transactions for users. It’s worth noting the achievement of over 1 billion on-chain transactions this year. Paxos introduced Wrapped $USDL (wUSDL) for Injective— a stablecoin providing stability and yield with 1:1 reserve backing. 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 signifies a major expansion in stablecoin integration, potentially leading to more active participation and efficient cross-operation between decentralized and traditional financial markets.
