Emerging stablecoin issuer Agora has raised $12 million in a seed funding round led by Dragonfly to launch their upcoming stablecoin.
The funding marks a significant step for Agora as it prepares to launch its USD-pegged stablecoin, the AUSD, and gain a foothold in the highly competitive stablecoin market.
Dragonfly Spearheads Funding Round
Agora, co-founded by Jan Van Eck’s son Nick Van Eck, managed to secure the seed investment through a funding round led by Dragonfly and support from Robot Ventures and General Catalyst. The initiative was co-founded by Drake Evans and Joe McGrady. Agora announced the news on the official X handle, stating,
“We are thrilled to announce that we have raised a $12 million Seed round led by @dragonfly_xyz. Agora is building next-generation payments and asset infrastructure for the transmission of value on blockchain-based rails.”
Nick Van Eck, the co-founder and CEO of Agora, stated,
“We’ve been thrilled to see the market demand and reception of AUSD. We’re expecting to come to the market and shake up the rent-seeking and closed-partner models.”
Rob Hadick, the General Partner at Dragonfly, said that the current stablecoin market was riddled with outdated technologies and dubious regulatory structures. Hadick believes that Agora would upend such existing models through its customer-first perspective.
“The stablecoin market is rife with misaligned incentives, outdated technologies, and dubious regulatory structures. Agora is upending those existing models by approaching the market from a customer-first perspective while building best-in-class technology in a compliant infrastructure that allows them to bring together the best partners in the world.”
International Customers
Agora plans to back its AUSD stablecoin with a mix of cash, US Treasury bills, and overnight purchase agreements, and it will focus on non-US customers. According to Agora, the combination of cash, US Treasury bills, and overnight purchase agreements helps anchor the stablecoin’s value to secure and liquid assets.
“Until there’s federal legislation for stablecoins in the US, we’re going to focus primarily on customers outside of the US.”
VanEck is also set to oversee a reserve fund for Agora, according to VanEck’s Director of Digital Assets Product, Kyle DaCruz, who stated,
“There is a need to have transparent and trustworthy institutions managing the assets of these digital dollars. The exciting future of stablecoins is one in which audited and transparent stablecoin reserves are standard, and we are looking forward to helping Agora build that future.”
Focus On Institutional Partners
According to Van Eck, there is a space in the market for a new player alongside the two leading players, USDT and USDC. Van Eck stated that Agora will focus on engaging institutional clients and global partners instead of retail users based outside the US. It also does not plan to issue a governance token.
“Where stablecoins really moved the needle are places like Argentina and Southeast Asia, and so we’re heavily focused on being the best partner stablecoin to partners. So those range from exchanges to custodians to dapps to trading firms.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
