TLDR:
- Van Eck heir, Nick van Eck, is launching a new USD stablecoin called Agora with $12 million in VC backing.
- The stablecoin, AUSD, will be fully backed by cash, U.S. Treasury bills, and overnight repo agreements.
Nick van Eck, the son of Jan van Eck, is set to launch a new United States dollar-backed stablecoin after closing a $12-million funding round. Along with crypto veterans Drake Evans and Joe McGrady, van Eck founded Agora in October to introduce the Agora digital dollar (AUSD). The stablecoin will be fully backed by cash, U.S. Treasury bills, and overnight repo agreements. The $12-million seed funding round was led by digital asset VC firm Dragonfly, with additional investments coming from Robot Ventures, Wintermute, Breed, and General Catalyst.
The Agora digital dollar, with the ticker AUSD, will not be available in the United States until comprehensive legislation has been passed. The parent company of Agora is incorporated in Delaware, with the stablecoin issuer based in the British Virgin Islands. For now, Agora will focus on serving select markets outside the U.S., with a particular emphasis on countries like Argentina and Southeast Asia. Van Eck believes there is still room for a newcomer in the stablecoin market, despite competition from established players like Tether and Circle.
AUSD holders will not receive income like holders of TerraClassicUSD did before its collapse in May 2022. Van Eck is determined to build a company that pushes the industry forward and has expressed a commitment to establishing partnerships with various industry players. Agora’s approach to the stablecoin market will involve collaboration with cryptocurrency exchanges, custodians, decentralized applications, and trading firms. Overall, Agora’s entrance into the stablecoin market brings a new player with potential to impact the industry.
