Emerging stablecoin issuer Agora has raised $12 million in a seed round led by Dragonfly to launch its upcoming stablecoin.
This financing marks an important step for Agora as it prepares to launch its USD-pegged stablecoin AUSD and gain a foothold in the highly competitive stablecoin market.
Dragonfly Spearheads funding round
Agora, co-founded by Nick Van Eck, son of Jan Van Eck, successfully received seed investment through a round of financing led by Dragonfly and with support from Robot Ventures and General Catalyst. The initiative was co-founded by Derek Evans and Joe McGrady. Agora announced the news on the official X account and said:
“We are excited to announce that we have raised a $12M seed round led by @dragonfly_xyz. Agora is building the next generation of payments and asset infrastructure to transfer value on blockchain-based rails.”
Nick Van Eck, co-founder and CEO of Agora, said:
“We are excited to see market demand and acceptance of AUD USD. We look forward to entering the market and changing the rent-seeking and closed-partner model.”
Rob Hadick, general partner at Dragonfly, said the current stablecoin market is riddled with outdated technology and questionable regulatory structures. Hadick believes Agora will disrupt the existing model through its customer-first perspective.
“The stablecoin market is rife with misaligned incentives, outdated technology, and questionable regulatory structures. Agora is disrupting these existing models, entering the market from a customer-first perspective while building best-in-class technology within a compliant infrastructure that enables They are able to bring together the best partners in the world.”
international customers
Agora plans to support its AUSD stablecoin through a combination of cash, U.S. Treasury bills and overnight purchase agreements, with a focus on non-U.S. customers. Agora said the combination of cash, U.S. Treasury bills and overnight purchase agreements helps anchor the value of the stablecoin in a safe and liquid asset.
“Until the U.S. enacts federal legislation on stablecoins, we will primarily focus on customers outside the U.S.”
Kyle DaCruz, director of digital asset products at VanEck, said VanEck will also oversee Agora’s reserve fund, saying:
“There needs to be transparent and trustworthy institutions to manage these digital dollar assets. An exciting future for stablecoins is where audited and transparent stablecoin reserves become the standard, and we look forward to helping Agora build that future.”
Follow institutional partners
Van Eck said that in addition to the two leaders USDT and USDC, there is room for new players in the market. Van Eck said Agora will focus on attracting institutional clients and global partners rather than retail users outside the United States. It also does not plan to issue governance tokens.
“Where stablecoins are really coming into play is places like Argentina and Southeast Asia, so we’re very committed to being the best stablecoin partner for our partners. So these range from exchanges to custodians, from dapps to trading companies.”
Disclaimer: This article is for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
