VanEck-backed stablecoin AUSD debuts on Injective blockchain

crypto.news · 2024-10-31T05:32:53+00:00

US dollar-pegged stablecoin AUSD, created by crypto startup Agora and backed by VanEck, is now supported by the Injective blockchain. The move aims to enhance liquidity and make on-chain staking easier. The addition of AUSD is expected to support Injective's initiative of using burn auctions and on-chain staking to offer users the full yield, said Eric Chen, chief executive of Injective Labs.

crypto.news

2024-10-31 05:32:53

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Agora’s AUSD, a stablecoin backed by VanEck and held by State Street, now powers cross-market liquidity on the Injective blockchain.

Injective (INJ) has added support for AUSD, a U.S. dollar-pegged stablecoin issued by crypto startup Agora, marking a significant step toward bridging decentralized finance with traditional finance markets.

According to a press release shared with crypto.news on Friday, introducing the stablecoin to Injective is anticipated to enhance liquidity on the Injective blockchain. Eric Chen, Injective Labs’ chief utive officer and co-founder, highlighted AUSD’s unique approach, noting it “differentiates from other stablecoins in how it offers users full yield.”

“This makes it a powerful vehicle in Injective’s initiatives — including burn auctions and on-chain staking — to ensure project’s users are the core beneficiaries of eco revenue.”

Eric Chen

Agora’s chief utive officer and co-founder Nick van Eck explained that the decision to expand the stablecoin to the new network follows Injective’s eco processing “more than $40 billion in volume across U.S. dollar-denominated stablecoins since launch.” He added that with over 1 billion on-chain transactions this year and more than 500,000 total active addresses, Injective “offers the most robust eco to offer AUSD natively.”

AUSD expands in $170 billion stablecoin market

The launch follows Agora’s recent partnership with cross-chain provider Wormhole, aimed at expanding AUSD’s reach across multiple blockchain networks, including Solana, Aptos, and Arbitrum.

Launched in 2024 by Nick van Eck, Drake Evans, and Joe McGrady, Agora aims to build an open and inclusive stablecoin network. In April, the startup raised $12 million in funding led by Dragonfly to support its stablecoin platform launch, with a focus on regulatory compliance. The funding round included investments from Wintermute Ventures, Galaxy, and Consensys.

With assets managed by VanEck, including U.S. Treasury bills and cash, and custodial services provided by State Street, AUSD joins a stablecoin market valued at over $170 billion, where U.S. dollar-backed stablecoins comprise the vast majority.

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