Tuesday, April 16, 2024
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VanEck to handle reserve fund for brand spanking new Agora Greenback stablecoin enterprise after $12 million increase

Bitcoin exchange-traded fund (ETF) issuer VanEck is ready to supervise the reserve fund for a brand new stablecoin enterprise known as Agora Greenback (AUSD).

The stablecoin agency raised $12 million in a funding spherical led by crypto enterprise fund Dragonfly. The agency was launched by Nick Van Eck, the son of legendary funding supervisor Jan Van Eck, in collaboration with Drake Evans and Joe McGrady.

VanEck is the issuer of one of many not too long ago accredited Bitcoin ETFs within the US. Its fund, HODL, has loved modest adoption since its launch, boasting $586 million in property beneath administration.

Agora Greenback

AUSD is a completely collateralized fiat-backed stablecoin seeking to upend the market with its “customer-first perspective in a compliant construction.”

Based on the agency:

“Agora believes that digital {dollars} needs to be handled akin to public items, returning our income again to the ecosystem and particularly to those that drive utility and liquidity.”

The agency revealed that it’s targeted on regulatory compliance and is pursuing licenses the place relevant. Nonetheless, its companies are solely obtainable in choose markets exterior the USA.

Agora mentioned the money custodian of its reserve fund shall be one of many largest custodians on the planet. Moreover, its reserve fund property shall be bankrupt remotely, held in belief, and frequently audited.

Stablecoin market rising

Agora arrives when the stablecoin market enjoys an uptrend and entrance from main monetary gamers like PayPal and decentralized finance tasks like Aave and Ethena.

Based on CryptoSlate’s knowledge, the sector’s complete market capitalization has grown by 15% on the year-to-date metric to roughly $150 billion, its highest degree since FTX collapsed in November 2022.

Tether’s USDT stays the dominant asset within the house, controlling greater than 69% of the market. Its progress trajectory has proven no indicators of slowing down because it has expanded to new blockchain networks, and its market capitalization now hovers round $104 billion.

In the meantime, Circle’s USDC is experiencing a notable resurgence amidst the bull market. Its provide elevated by 22% through the yr’s first quarter to $32.7 billion, the very best amongst main stablecoin issuers.

Moreover, newcomers like Ethena’s USDe artificial greenback have garnered vital consideration because of its interesting yield mannequin.

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