Agora Launches AUSD USD-Backed Stablecoin on Injective, Targeting DeFi-TradFi Liquidity Bridge

Backed by VanEck's asset management and custodied by State Street, AUSD will be collateralized with a basket of cash, U.S. treasury bills, and overnight repurchase agreements

Agora, co-founded by ETF mogul Nick Van Eck, is set to launch its US dollar stablecoin, AUSD, on Injective’s blockchain in a bid to create a bridge for liquidity between decentralized and traditional finance markets.

Backed by VanEck's asset management and custodied by State Street, AUSD is touted as the "first fully on-chain, institutional-grade stablecoin" to be integrated into Injective's ecosystem.

According to a statement, AUSD will be fully collateralized with a basket of cash, U.S. treasury bills, and overnight repurchase agreements, ensuring a 1:1 ratio with the US dollar at all times.

This integration is expected to make AUSD widely available throughout the Injective ecosystem, facilitating transactions across decentralized exchanges (DEXs), on-ramps, and lending platforms within the Injective network.

“The launch of AUSD on Injective underscores the dominance of USD-backed stablecoins — with 99.7% market share — as an institutional-grade asset for capital formation and movement,” Van Eck said in a blog post.

Injective boasts an active ecosystem with over 500,000 addresses and 1 billion transactions annually, and the addition of AUSD aims to capitalize on this network.

Injective’s infrastructure has processed over $40 billion in USD-backed stablecoin volume, and the integration of AUSD seeks to tap into this liquidity pool.

AUSD's inclusion is also expected to simplify cross-chain liquidity flow without compatibility barriers, appealing to users and dApps.

The broader stablecoin market, dominated by US dollar-pegged assets, continues to grow as a critical component of the digital asset ecosystem, boasting a total market capitalization of over $170 billion.

The launch of AUSD on Injective aligns with broader discussions on the role of institutional-grade stablecoins in DeFi.

These discussions will be featured at the Benzinga Future of Digital Assets event on Nov. 19, where industry leaders will explore the growing overlap between stablecoins and mainstream finance.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

The above is the detailed content of Agora Launches AUSD USD-Backed Stablecoin on Injective, Targeting DeFi-TradFi Liquidity Bridge. For more information, please follow other related articles on the PHP Chinese website!