Stablecoin platform Agora has secured $50 million in a Series A funding round led by crypto venture firm Paradigm, with additional support from Dragonfly Capital.
Key Takeaways:
- Agora raised $50 million in a Series A round led by Paradigm to expand its stablecoin platform.
- The funding arrives as US regulators advance stablecoin legislation with the recent passage of the GENIUS Act.
- Agora’s AUSD stablecoin operates across multiple blockchains and serves major clients.
The fresh capital aims to accelerate the rollout of Agora’s all-in-one system for issuing and managing stablecoins, as well as to launch a new white-label product that allows enterprises to create branded stablecoins without handling the underlying infrastructure.
“This milestone enables us to accelerate the development of Agora’s full-stack platform for stablecoin infrastructure, purpose-built to support the next generation of digital finance applications,” the firm wrote on X.
Agora Stablecoin Funding Arrives as US Regulatory Momentum Builds
The funding announcement comes amid growing regulatory momentum in the United States.
In June, the Senate passed the GENIUS Act, which establishes a framework for the issuance and trading of stablecoins, signaling a potential path to broader adoption in the country.
Agora was co-founded by Nick van Eck, son of renowned fund manager Jan van Eck, alongside crypto veterans Drake Evans and Joe McGrady.
The latest round follows a $12 million seed raise in April 2024. Agora’s native stablecoin, AUSD, is already live across multiple blockchains including Ethereum, Solana, Polygon, Avalanche, and Arbitrum.
The platform’s clientele includes firms like Nonco, Flowdesk, VanEck, Conduit, and Plume Network.
Backed by cash, U.S. Treasury bills, and repurchase agreements, AUSD has yet to launch for U.S. customers but has gained traction internationally.
The platform offers developers and institutions programmable digital dollars, enabling greater flexibility in stablecoin issuance and management.
Amid renewed interest from major financial firms such as Visa, Mastercard, Stripe, and PayPal, stablecoins are gaining attention as key tools for blockchain-based payments and settlements.
Stablecoin Market to Hit $2 Trillion in Coming Years
On Wednesday, Ripple CEO Brad Garlinghouse said the stablecoin sector is poised for explosive growth, projecting the market could balloon from its current $250 billion capitalization to as much as $2 trillion in the near future.
“Many people think it will reach $1 to $2 trillion in a handful of years,” Garlinghouse said, adding that Ripple is positioned to benefit from that trajectory.
Stablecoins have emerged as one of crypto’s rare success stories, capturing the attention of corporations and regulators alike.
Recent reports that Amazon, Walmart, and other major companies are exploring stablecoin payments sent ripples through traditional finance, briefly pushing stablecoin transaction volumes ahead of Visa’s in 2024.
Frank Combay of Next Generation said regulatory clarity, especially Europe’s MiCA framework, has unlocked stablecoins’ growth potential by removing the biggest barrier: uncertainty.
He believes stablecoin ecosystems can reduce transaction costs by over 90% and are becoming increasingly attractive to both consumers and corporations.
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