Injective has announced the launch of its first native stablecoin, AUSD, a fully collateralized U.S. digital dollar.
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 handled by VanEck, a leading asset management firm with $100 billion in assets under management (AUM), while custodial services are provided by State Street, overseeing $4.1 trillion AUM. Each AUSD token is designed to be redeemable for one U.S. dollar, providing users with a sense of stability. Users will be able to acquire, trade, and sell AUSD without encountering bridging issues, making it widely available across various decentralized applications such as 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 achieved a milestone of over 1 billion on-chain transactions this year. Recently, Paxos introduced Wrapped $USDL (wUSDL) to the platform—a stablecoin designed to offer stability and yield, with a secure 1:1 backing for each dollar held in reserves. In addition, last September, Injective launched the BUIDL Index, the world's first perpetual market designed to track BlackRock's $BUIDL Fund supply, offering unprecedented 24/7 exposure to tokenized assets, including U.S. treasuries, with leverage options.
The launch of AUSD on Injective is a significant step in solidifying the U.S. dollar's position as the dominant stablecoin globally, offering unique opportunities for users and the platform.
