Van Eck is heavily investing in stablecoins, a relatively new type of cryptocurrency. In order to bolster the case for investment, Agora raised $12 million in finance under the direction of Dragonfly.
Van Eck will assume the role of fund manager for Agora’s stablecoin reserves. Nick Van Eck, whose father is experienced financial management expert Jan Van Eck, wants to maintain his family firm and raise his cryptocurrency bet.
A former General Catalyst partner enters the competitive stablecoin market. The entire endeavor aims to protect customers from the market volatility inherent in the cryptocurrency ecosystem by creating opportunities for other assets, such as the dollar.
Van Eck, a start-up that raised $12 million, along with cryptocurrency experts Joe McGrady and Drake Evans, are co-founders of Agora. This sum was raised in a seed fund round led by Dragonfly, a venture capital firm focused on digital assets. The investment from General Catalyst and Robot Ventures includes this equity round.
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The stablecoin issuer of Agora is headquartered in the British Virgin Islands, whereas the company’s parent is incorporated in Delaware. Users outside of the US will be the only ones able to access the stablecoin.
Agora’s USD stablecoins, similar to other well-known stablecoins, will be backed by US Treasury notes, cash, and overnight repurchase agreements. According to Kyle DaCruz, director of VanEck’s digital assets division, the company will oversee a fund for Agora’s reserves.
Kyle DaCruz went on to say that organizations in charge of overseeing the digital dollar’s assets must be open, reliable, and transparent. The company is excited to assist Agora in creating the transparent and audited stablecoin reserves that will define the exciting future of stablecoins.
Tether, the second most traded cryptocurrency right now, has long dominated the stablecoin market. The most well-known stablecoin, USDC, has a market value of about $32 billion, according to data tracker CoinGecko, while Tether, represented by Circle Internet Financial, has a market value of up to $104 billion. Van Eck consequently believed that there was potential for yet another entrant into the stablecoin market.
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Agora further intends to put less emphasis on directly keeping customers globally and more on forming alliances with various cryptocurrency businesses, such as exchanges. Agora has no plans to release government tokens because their designs will be far more intricate. The corporation wants to enter into agreements with its partners on income sharing. There is no direct dividend that its holders can obtain from it.
