The Series A funding round, led by Dragonfly, will enable Agora to accelerate the development of its stablecoin infrastructure, which is designed to support upcoming decentralized finance applications for issuing and managing stablecoins seamlessly.
Agora Raises $50 Million to Accelerate Development of Its Stablecoin Initiative
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Agora Secures $50 Million in Series A Round to Develop Stablecoin Solutions
Stablecoins are rising in popularity as part of the cryptocurrency ecosystem, and financial institutions are racing to build and integrate them as part of their business model. Agora, a stablecoin company, has raised $50 million in its Series A funding round.
Led by Dragonfly Capital, this capital influx will be leveraged by the company to accelerate the development of a full-stack stablecoin platform, “purpose-built to support the next generation of digital finance applications.”
Agora is the issuer of AUSD, a stablecoin that differs from its current centralized counterparts, as it proposes to share the revenue resulting from the operation of the token’s underlying backup with its partners, incentivizing commercial partners to implement its solution. Even so, AUSD is still just a small actor in the stablecoin market, reaching a market cap of $150 million in a sea of billion-dollar whales.
The project wants to be an enabler for other companies to launch their own stablecoins. To this end, it has recently launched a whitelabel platform that will ease the task of issuing, managing, and operating stablecoins for third parties.
About this solution, Agora explained:
No need to manage complex infrastructure, secure banking relationships, liquidity, or build from scratch – Agora handles it all. We were long believers that to truly build a platform you needed to start with building the network.
Agora will continue to focus its action outside the U.S., where co-founder Jan Van Eck believes that there is demand for stablecoins due to several factors, including inflation and cross-border payments. “A lot of different financial institutions outside of the U.S., I would say, are looking more aggressively and will be quicker to move than some of the companies in the U.S. A lot of companies in the U.S. are talking about it because it’s the topic du jour,” he concluded.
Read more: Dragonfly-Backed Stablecoin, Agora, to Launch Natively on Sui
