Dragonfly Leads $12M Seed Round for Stablecoin Issuer Agora

  • Dragonfly’s leadership in a $12 million seed round for Agora, showcasing strong investor confidence in the stablecoin issuer’s vision and potential. 
  • Additionally, the participation of General Catalyst and Robot Ventures underscores broader support within the venture capital community for Agora’s stablecoin project.

Stablecoin issuer Agora has successfully raised $12 million in seed funding, according to reports from Bloomberg. The funding round was spearheaded by venture firm Dragonfly, with additional contributions from General Catalyst and Robot Ventures.

Agora’s primary objective is to introduce a USD-pegged stablecoin, backed by a combination of cash reserves, U.S. Treasury bills, and overnight repurchase agreements. Initially, the company will focus on catering to non-U.S. customers and aims to establish partnerships with exchanges and other cryptocurrency-related entities.

The co-founder of Agora, Nick Van Eck, hails from a notable financial background, being the son of Jan Van Eck, CEO of the investment firm VanEck. As per Bloomberg’s report, VanEck will oversee the management of the funds held in Agora’s reserves.

Agora enters a competitive landscape dominated by established players in the USD-pegged stablecoin market. Tether (USDT) currently commands over half of the total Ethereum stablecoin supply, while Circle’s USDC constitutes a significant portion as well, according to data from The Block’s Data Dashboard.

VanEck’s involvement extends beyond Agora, with the recent approval of the spot bitcoin exchange-traded fund (ETF) named HODL. The ETF witnessed substantial interest post-approval, experiencing a significant surge in trading volume, as reported by The Block. On April 1st alone, HODL recorded a substantial $22.82 million in USD volume.

Venture Capital Boosts Agora’s Stablecoin Ambitions

The infusion of $12 million in seed funding, led by Dragonfly, marks a significant milestone for Agora as it endeavors to establish itself in the competitive stablecoin market. With backing from prominent investors and a clear focus on non-U.S. customers, Agora’s journey to launch its USD-pegged stablecoin backed by a robust reserve appears promising.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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