Stablecoin issuer Agora plans to launch AUSD on Ethereum in June

Nick van Eck, CEO of stablecoin issuer Agora, believes that stablecoin issuers that provide passive income to holders are neglecting the core mission of stablecoins. In a Medium post on May 27, he explained that these companies should focus on utility, liquidity and means of exchange to benefit as many individuals and businesses as possible. Interest-bearing stablecoins offer a new dimension for DeFi users seeking to earn interest, but van Eck said such products may be classified as securities products in many countries, thus limiting the customer range. He added: "This not only deprives you of your customers, but also deprives you of your liquidity providers, suppliers, and a higher utility ceiling. Your product cannot be traded freely. Regulated financial services companies outside the United States are unlikely to use your product because it poses risks without providing adequate returns." In addition, Van Eck said that Agora, which will launch the Agora Digital Dollar (AUSD) on Ethereum next month in June, will not "pick winners and losers" in the industry. Instead, it will try to work with as many cryptocurrency exchanges, trading companies and fintech companies as possible. AUSD will be fully backed by cash, U.S. Treasury bills and overnight repurchase agreements, while VanEck, a $90 billion asset management company (Jan van Eck is CEO), will manage a fund for Agora's reserves. (Cointelegraph) Previously in April, stablecoin issuer Agora announced the completion of a $12 million seed round of financing, led by Dragonfly, with participation from General Catalyst and Robot Ventures. Agora was co-founded by Van Eck and cryptocurrency veterans Drake Evans and Joe McGrady, and its issued stablecoins are backed by cash, U.S. Treasury bills and overnight repurchase agreements.