KEY TAKEAWAYS
- Agora launched AUSD, a fully collateralized stablecoin, on the Injective blockchain to enhance liquidity between DeFi and TradFi markets.
- AUSD is backed by cash, U.S. Treasury bills, and reverse repurchase agreements, with assets managed by VanEck and custodied by State Street.
- Since its launch, AUSD has reached a circulating supply of over $65 million, facilitating transactions across multiple blockchain ecosystems.
- The stablecoin market, dominated by U.S. dollar-denominated assets, is the third largest in the cryptocurrency sector, highlighting AUSD’s potential impact.
Agora, a stablecoin startup co-founded by Nick Van Eck, has launched its first native stablecoin, AUSD, on the Injective blockchain. The announcement was made here. AUSD is a fully collateralized U.S. digital dollar, backed by assets managed by VanEck and custodied by State Street.
The introduction of AUSD aims to enhance liquidity between decentralized finance (DeFi) and traditional finance (TradFi) markets. By offering a stable asset, AUSD facilitates efficient transactions within the Injective ecosystem, eliminating the need for additional bridging or compatibility issues.
Institutional-Grade Backing and Market Integration
AUSD is backed by a basket of cash, U.S. Treasury bills, and overnight reverse repurchase agreements. VanEck, a $100 billion asset management firm, oversees the assets, while State Street, with $4.1 trillion in assets under management, provides custody services. Each AUSD token is designed to be redeemable for one U.S. dollar, offering stability compared to more volatile crypto assets.
Since its launch, AUSD has achieved a circulating supply of over $65 million, with daily trading volumes exceeding $15 million across ecosystems such as Ethereum, Avalanche, Sui, and Mantle. The expansion to Injective allows key ecosystem decentralized applications (dApps) to integrate AUSD seamlessly into their solutions.
Impact on the Stablecoin Market
The stablecoin market is the third largest sector in the cryptocurrency ecosystem, following Bitcoin and Ethereum, with a total market capitalization exceeding $170 billion. U.S. dollar-denominated stablecoins dominate this market, holding a 99.7% market share.
Nick Van Eck, CEO and Co-Founder of Agora, highlighted the significance of AUSD’s launch on Injective, noting the blockchain’s robust ecosystem, which has processed over $40 billion in volume across USD-denominated stablecoins. Injective’s infrastructure, characterized by ultra-low fees and fast transaction times, supports Agora’s vision of a more secure and inclusive financial system.
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