Agora, an emerging stablecoin issuer, has clinched a $12 million seed investment led by Dragonfly, with additional support from General Catalyst and Kraken Ventures. This marks a step for Agora as it gears up to launch a USD-pegged stablecoin, AUSD, aiming to carve a niche in the competitive stablecoin market.
The initiative is particularly focused on non-U.S. customers, offering AUSD backed by a mix of cash, U.S. Treasury bills, and overnight repurchase agreements.
At the heart of Agora’s venture is Nick Van Eck, co-founder and a notable figure from the investment giant VanEck’s lineage. VanEck’s involvement extends to managing the reserve funds for Agora, adding a layer of credibility and financial insight to the project.
With this funding, Agora is poised to make a significant impact, leveraging the expertise of its backers and its innovative approach to its USD-pegged stablecoin. This development signals a vibrant future for the stablecoin sector and the broader cryptocurrency ecosystem.
Notable crypto veterans Drake Evans and Joe McGrady join the team, bringing expertise from firms like Frax Finance and Galaxy Digital. Dragonfly leads the seed funding, with support from Hack VC, Kraken Ventures, Mirana Ventures, Wintermute, Mantle EcoFund, Foresight Ventures, Galaxy, and Consensys.
Agora’s parent company, based in Delaware, and its stablecoin issuer, situated in the British Virgin Islands, are charting a strategic course. Initially, their focus lies on serving select international markets, steering clear of the U.S. until federal legislation for stablecoins is established.
VanEck told Bloomberg, “Until there’s federal legislation for stablecoins in the U.S., we’re going to focus primarily on customers outside of the U.S.”
The potential impact of Agora’s digital dollar is particularly resonant in regions like Argentina and Southeast Asia, where it stands to offer significant benefits.
VanEck suggested that AUSD holders wouldn’t receive earnings akin to those of TerraClassicUSD (USTC) holders pre-collapse in May 2022, aiming to reshape the industry’s narrative for progress.
Also Read: Web3 AI platform MyShell secures $11 million in funding round led by Dragonfly
