Agora CEO Advocates for Core Mission of Stablecoins Over Passive Income

According to Odaily, Nick van Eck, CEO of stablecoin issuer Agora, has expressed his belief that stablecoin issuers offering passive income to holders are overlooking the core mission of stablecoins. In a Medium article published on May 27, he explained that these companies should focus on utility, liquidity, and means of transaction to benefit individuals and businesses as much as possible. Interest-bearing stablecoins offer a new dimension for DeFi users seeking to earn interest, but van Eck stated that such products could be classified as securities products in many countries, thus limiting the customer base. He added, 'This not only deprives you of your customers but also your liquidity providers, suppliers, and a higher utility cap. Your products cannot be freely traded. Financial services companies regulated outside the United States are unlikely to use your product because it carries risk without providing sufficient returns.' Furthermore, van Eck announced that Agora will launch the Agora Digital Dollar (AUSD) on Ethereum next month, in June. Instead of 'picking winners and losers' in the industry, it will attempt to collaborate with as many cryptocurrency exchanges, trading companies, and fintech companies as possible. The AUSD will be fully backed by cash, US Treasury bills, and overnight repurchase agreements, and the $90 billion asset management company VanEck, with Jan van Eck as CEO, will manage a fund for Agora's reserves. Previously in April, 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, along with cryptocurrency veterans Drake Evans and Joe McGrady, and its issued stablecoin is supported by cash, US Treasury bonds, and overnight repurchase agreements.