Agora, a burgeoning stablecoin platform, has successfully closed a $50 million Series A funding round. The round was spearheaded by prominent crypto venture firm Paradigm, with additional significant backing from Dragonfly Capital. This substantial injection of capital arrives as regulatory momentum for stablecoins builds in the United States.
The fresh funding is earmarked to accelerate the rollout of Agora’s comprehensive system for issuing and managing stablecoins. The company also plans to launch a new white-label product, which will enable enterprises to create their own branded stablecoins without needing to manage 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 announced on X.
Agora’s funding announcement coincides with significant advancements in U.S. stablecoin legislation. In June, the Senate passed the GENIUS Act, which establishes a foundational framework for the issuance and trading of stablecoins. This legislative progress signals a potential path towards broader adoption of stablecoins within 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. This latest funding round follows a $12 million seed raise in April 2024.
Agora’s native stablecoin, AUSD, is already operational across multiple blockchains, including Ethereum, Solana, Polygon, Avalanche, and Arbitrum. While AUSD, backed by cash, U.S. Treasury bills, and repurchase agreements, is not yet available to U.S. customers, it has gained considerable traction internationally. The platform provides developers and institutions with programmable digital dollars, offering enhanced flexibility in stablecoin issuance and management. Its clientele includes notable firms such as Nonco, Flowdesk, VanEck, Conduit, and Plume Network.
Stablecoins are garnering increasing attention as crucial tools for blockchain-based payments and settlements, drawing renewed interest from major financial players like Visa, Mastercard, Stripe, and PayPal.
On Wednesday, Ripple CEO Brad Garlinghouse expressed strong optimism for the stablecoin sector, predicting an explosive growth trajectory. He projects the market could balloon from its current $250 billion capitalization to as much as $1 to $2 trillion in the near future.
“Many people think it will reach $1 to $2 trillion in a handful of years,” Garlinghouse remarked, emphasizing Ripple’s positioning to benefit from this expansion.
Stablecoins have emerged as a notable success story in the crypto space, attracting the attention of both corporations and regulators. Recent reports indicate that major companies like Amazon and Walmart are exploring stablecoin payments, which briefly pushed stablecoin transaction volumes ahead of Visa’s in 2024.
