A pivotal moment in the crypto world as Injective launches its first stablecoin. Agora introduces AUSD, an asset-backed stablecoin supported by leading financial institutions.
AUSD: A Reliable Stablecoin
AUSD is backed by a diverse range of assets, including cash, U.S. Treasury bills, and overnight reverse repurchase agreements. Reserve management is entrusted to VanEck, an asset management firm overseeing $100 billion in assets, while State Street provides custodial services, managing $4.1 trillion in assets. Each AUSD token is designed to be redeemable for one U.S. dollar, offering users stability. Reports suggest that users will be able to acquire, trade, and sell AUSD without bridging issues, making the token widely available across various decentralized applications (dApps), including decentralized exchanges (DEXs), staking, and lending protocols.
Market Context and Growth
Since its inception, AUSD's circulating supply has surged to over $65 million, with daily trading volumes exceeding $15 million across multiple blockchains such as Ethereum, Avalanche, and Sui. The stablecoin market has become the third largest sector in the cryptocurrency ecosystem, valued at over $170 billion. AUSD’s entry into the market reinforces the dominance of U.S. dollar-backed stablecoins, which currently hold 99.7% market share.
Advantages of Injective's Infrastructure
Injective's low transaction fees and fast throughput ensure that users can execute transactions in real-time. Notably, Injective has also achieved a milestone of over 1 billion on-chain transactions this year. Recently, Paxos introduced Wrapped $USDL (wUSDL) on Injective, a stablecoin designed to offer stability and yield with secure 1:1 backing for each dollar held in reserves. Additionally, last September, Injective launched the BUIDL Index, which track BlackRock's BUIDL Fund, offering 24/7 exposure to tokenized assets.
The launch of AUSD on Injective marks a significant step in the evolution of decentralized finance, offering a stablecoin backed by robust assets and integrating seamlessly with global protocols.
