Agora’s AUSD Stablecoin Gains Traction in Digital Finance
Agora, a leading stablecoin infrastructure provider, continues to make waves in the cryptocurrency market with its digital dollar, AUSD. Designed to bridge traditional finance and decentralized ecosystems, AUSD is a fully collateralized, USD-pegged stablecoin minted 1:1 with the U.S. dollar, offering a secure and cost-efficient solution for global transactions [1].
A Stablecoin Built for Stability and Scale
AUSD stands out in the crowded stablecoin market due to its institutional-grade backing and gas-optimized smart contract, which minimizes transaction costs. The stablecoin is supported by a reserve fund comprising cash, U.S. Treasury bills, and overnight repurchase agreements, managed by VanEck, a firm with over $100 billion in assets under management, and custodied by State Street, with $4.1 trillion in AUM. This robust financial infrastructure ensures transparency and security, making AUSD a reliable choice for trading, lending, and payments.
Since its launch, AUSD has seen rapid adoption, with a circulating supply exceeding $128 million and daily trading volumes reaching $6.7 million across major blockchain networks like Ethereum, Avalanche, Sui, and Injective. Its integration into platforms such as AggLayer [2], a cross-chain settlement network co-developed by Polygon Labs, has further enhanced its utility by enabling seamless, fee-free transactions across connected chains.
Key Milestones and Partnerships
Agora marked a significant milestone in January 2025 with its first over-the-counter (OTC) transaction of AUSD in collaboration with Galaxy, a leading digital asset firm. This transaction underscored AUSD’s transition from proof-of-concept to real-world application, highlighting its potential to capture market share in the maturing digital economy. Nick van Eck [5], CEO and co-founder of Agora, emphasized the company’s commitment to compliance, stating, “As U.S. regulations around digital assets take shape, we are committed to positioning AUSD as a cornerstone of the institutional stablecoin market.”
AUSD’s integration into the Injective blockchain as its first native stablecoin in October 2024 further solidified its role in decentralized finance (DeFi). The stablecoin is now utilized by key DeFi applications, including decentralized exchanges (DEXs) and on-ramps, facilitating seamless conversions between traditional and digital currencies. Additionally, AUSD’s listing on exchanges like LBank and XT has expanded its accessibility, with trading pairs such as AUSD/USDT driving liquidity.
Institutional Backing and Innovation
Founded in 2023 by Nick van Eck, Drake Evans, and Joe McGrady, Agora has attracted significant institutional support. A $12 million seed funding round in April 2024, led by Dragonfly [3] and supported by investors like General Catalyst and Robot Ventures, fueled AUSD’s initial launch. A subsequent $50 million [4] Series A round in July 2025, led by Paradigm, further bolstered Agora’s mission to expand its white-label stablecoin infrastructure, enabling businesses to launch branded stablecoins with ease.
Agora’s open partnership model sets it apart from competitors, allowing exchanges, custodians, and ecosystem builders to integrate AUSD and unlock new revenue streams. Unlike traditional stablecoins, AUSD shares revenue with network participants, creating a more equitable economic model. This approach has resonated with platforms like Miomi Game, which integrated AUSD on Polygon to enable players to receive gaming prizes directly in the stablecoin.
Challenges and Future Outlook
Despite its rapid growth, AUSD has faced scrutiny. In June 2025, Anchorage Digital rated AUSD as “notably risky” in its stablecoin safety matrix, citing structural and regulatory concerns. Agora’s CEO publicly disputed the rating, highlighting the stablecoin’s robust backing and custodianship by State Street. As regulatory oversight of stablecoins intensifies, Agora remains focused on compliance and transparency, with regular audits by top accounting firms to maintain trust.
Looking ahead, Agora aims to further expand AUSD’s reach through integrations with additional blockchain networks and DeFi protocols. The company’s vision of a unified financial operating system, coupled with innovations like Instant Liquidity and cross-chain bridging, positions AUSD as a key player in the global tokenized economy.