Co-founded by Nick Van Eck, son of Jan Van Eck, Agora has secured $12 million in seed funding, spearheaded by Dragonfly, to introduce a new stablecoin. As revealed in Agora’s recent social media update, Drake Evans and Joe McGrady stand as co-founders alongside Van Eck. Dragonfly took the lead in the funding round, with notable participation from General Catalyst and Robot Ventures.
Agora to Serve International Customers
Agora intends to underpin its stablecoin with a blend of cash, U.S. Treasury bills, and overnight repurchase agreements, aiming to tether its value securely to these assets of high liquidity.
The parent company of this initiative is registered in Delaware, while its stablecoin operations are headquartered in the British Virgin Islands. The company’s strategy involves offering its product exclusively to non-U.S. users.
“Given the absence of federal legislation for stablecoins in the US, our primary focus will be on customers outside of the US,” commented Van Eck.
Kyle DaCruz, Director of Digital Assets Product at VanEck, disclosed that VanEck will supervise a reserve fund for Agora.
“There’s a critical need for transparent and reliable institutions to manage the assets backing these digital currencies,” DaCruz emphasized.
“The promising future of stablecoins lies in a landscape where audited and transparent reserves become the norm, and we’re eager to assist Agora in shaping that future,” DaCruz added confidently.
New Stablecoin Targeting Institutional Partners
Van Eck expressed confidence in the viability of a new entrant in the stablecoin market, alongside established issuers like Tether and USDC.
The company’s strategy prioritizes engagement with institutional clients and partners worldwide, rather than targeting individual retail users outside the U.S. Additionally, Van Eck stated that Agora doesn’t intend to issue a governance token as part of its approach.
“Stablecoins have had a significant impact in regions such as Argentina and Southeast Asia, so our primary focus is on becoming the preferred partner stablecoin for entities ranging from exchanges to custodians to dapps to trading firms,” Van Eck explained.
Agora plans to establish revenue-sharing agreements with its partners, ensuring that any yields or profits generated are not directly distributed to individual holders.
