Nick van Eck's Agora Set to Unveil USD-Backed Stablecoin after $12M Funding Round
Summary:
Nick van Eck, alongside crypto veterans Drake Evans and Joe McGrady, is preparing to launch a US dollar-backed stablecoin, the Agora Digital Dollar (AUSD), following a successful $12 million funding round. AUSD will be fully backed by cash and other reliable financial instruments. Despite a competitive stablecoin market, van Eck believes there's room for Agora, which aims to develop strong partnerships across the crypto industry. Initially, Agora will cater to markets outside the U.S due to the absence of definitive stablecoin legislation in the country.
Nick van Eck, offspring of investment mogul Jan van Eck, is preparing to debut a new stablecoin pegged to the U.S. dollar, following an accomplished funding round which generated $12 million. Seasoned crypto experts, Drake Evans and Joe McGrady, partnered with van Eck in October to create Agora, aiming to introduce the Agora Digital dollar or AUSD, as revealed in a Bloomberg report dated April 2. The role of CEO will be undertaken by Nick van Eck. AUSD will hold its value, entirely backed by hard cash, U.S. Treasury bills, and overnight repo agreements, with the asset management company VanEck, led by Jan van Eck, overseeing the fund for Agora's reserves. As stated by VanEck’s director of digital assets Kyle DaCrzu, there is an existing need for credible and transparent organizations to manage the assets of digital dollars. The funding round, which raised $12 million, was spearheaded by Dragonfly, a digital asset VC firm, with supplemental contributions coming from Robot Ventures, Wintermute, Breed, and General Catalyst, where van Eck was formerly a partner. Formerly, Evans was in charge of lending at the decentralized finance company Frax Finance, and Joe McGrady was operating as the director of operations at Galaxy Digital, the digital asset management company. Agora's parent organization is incorporated in Delaware while its stablecoin issuer is located in the British Virgin Islands. Initially, Agora will cater to selected markets outside the U.S exclusively. In the absence of definitive U.S legislature concerning stablecoins, Agora's primary focus will be on clients outside of the U.S, as planned by van Eck. It is anticipated that regions like Argentina and Southeast Asia will receive the most advantages from a digital dollar. Although sizable stablecoins like Tether (USDT) and Circle (USDC), dominate the market with respective caps of $104.3 billion and $32.5 billion, van Eck maintains there is ample space for a newcomer. Agora will emphasize nurturing strong ties with all industry participants, ranging from custodians and cryptocurrency exchanges to trading firms and decentralized applications. Van Eck clarified that unlike the holders of TerraClassicUSD (USTC) prior to its collapse in May 2022, AUSD holders will not receive income. Van Eck's ambition is to initiate a company that can help drive the industry forward, especially after recent industry setbacks. Agora has not yet responded to requests for comments.
Published At
4/3/2024 6:05:35 AM
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