AVAX: Agora launches its digital dollar on the Avalanche blockchain network with the first group of partners
Agora has launched its fully collateralized US digital dollar, AUSD, on the Avalanche network. Built on the philosophy that money should be neutral, AUSD brings to bear an open model that incentivizes businesses–from exchanges and applications to Fintechs and payment providers–to contribute to and service the network and, in turn, participate in the economics stemming from its growth and adoption.
After having minted $40M within its first two weeks on Ethereum Mainnet, the AUSD stablecoin has expanded to Avalanche with $20M+ minted and integrations with critical ecosystem infrastructure.
Trader Joe provides a platform for trading AUSD with high efficiency and low slippage. Its Liquidity Book model concentrates liquidity, allowing for more efficient trades, which is particularly beneficial for larger transactions. This integration empowers global users with access to AUSD through DeFi, enhancing the token’s liquidity and market reach. Meanwhile, BENQI enhances the functionality of AUSD by providing users with a robust platform for lending, borrowing, and staking, thereby expanding its reach and utility within the Avalanche DeFi ecosystem. Additional ecosystem projects contributing to Agora include Pharaoh Exchange, Dexalot, and Wombat Exchange.
The stablecoin market has grown to $165 billion at present, with 27.5 million monthly active users across all blockchain ecosystems. Notably, the market is projected to reach $3 trillion by 2028 as consumer platforms integrate the technology and increase accessibility to a global user base. The United States Dollar remains the world’s principal reserve currency and the most widely used for international trade, accounting for a 58% share of foreign exchange reserves worldwide, 59% of SWIFT payments, and 88% of FX transaction volume. With stablecoins getting dollars into global hands at faster rates, Agora wants to return revenue to those businesses driving its adoption at global scale.
Avalanche’s EVM compatibility, sub-second transaction finality, low transaction fees, and enhanced customizability allow the team to operate AUSD on proven infrastructure at scale. In addition, the network’s top tier DeFi ecosystem, combined with its growing real world asset landscape and institutional participation, positions AUSD to capture attention from both crypto-native users and blockchain-enabled businesses alike. One such business is Avalanche-native protocol Trensi, which enables Money Services Businesses to settle global cross-border payments more efficiently and cost-effectively. This capability is crucial for businesses looking to streamline international transactions. Trensi aims to leverage AUSD in its global funding and financing operations, further demonstrating real-world interoperability and applicability beyond the crypto-native space.
“The Avalanche team has a deep understanding of requirements needed for institutions to build on-chain,” said Nick van Eck, CEO and Co-Founder of Agora. “Sub-second finality, customizability, and low transaction costs have driven many TradFi institutions to begin experimenting on Avalanche. We’re excited to continue working closely with many of these players and avid Avalanche builders.”
“We’re thrilled to see AUSD launch on Avalanche,” said Morgan Krupetsky, Head of Institutions & Capital Markets at Ava Labs. “Agora’s focus on opening the door to billions of people who were previously excluded from the global economy and dollar financial ecosystem closely aligns the view that blockchains and tokenization have the power to upgrade legacy financial services infrastructure and, in turn, make what once was economically prohibitive fundamentally more accessible.”
For the time being, Agora serves markets outside the United States and does not serve US persons or entities. AUSD is freely tradeable, and retail holders do not receive income generated by Agora. However, the model maintains that businesses driving liquidity and utility are adequately compensated. These businesses can use cash flow from Agora to improve their users’ experience through lower fees, stronger products, and more. AUSD is fully backed by cash, US Treasury bills, and overnight reverse repurchase agreements. Notably, its reserves are fully managed by the $100 billion asset management firm, VanEck, and custodied at State Street.
To learn more about Agora, visit here.