This Stablecoin is a Game Changer! Agora AUSD with Nick van Eck

12/3/24 •

Summaries by topic

• English

Agora AUSD, a stablecoin, is designed for enterprise-level adoption and aims to improve upon existing models by offering a more equitable value chain. It operates on multiple blockchains, including Ethereum, Avalanche, and Sui, with a focus on international markets where stablecoins offer significant value for cross-border payments and financial services. The founder, Nick van Eck, believes that stablecoins will play a major role in shaping the future of payments and financial services, potentially disrupting traditional models and driving greater accessibility and efficiency.

Founder's Background

• 00:01:28 Nick van Eck, founder of Agora, has a background in technology investing, with experience in enterprise software and venture capital. His family's involvement in asset management exposed him to the finance world early on. He developed an interest in crypto in 2016 after a hedge fund he worked for began buying Bitcoin, influenced by the potential to disrupt the gold market.

Agora AUSD Stablecoin

• 00:01:34 Agora launched AUSD, a stablecoin designed primarily for enterprise-level adoption. The model is designed to be more beneficial to exchanges and dapps by distributing a majority of net income, which encourages them to promote and integrate the AUSD token into their ecosystems. This approach is aimed at reducing fees and increasing adoption, ultimately benefiting users as well.

Blockchain & Reserves

• 00:09:57 AUSD is currently available on multiple blockchains, with Avalanche being the most active chain to date. The team is planning to expand to Polygon's AG Layer and other networks. The reserves are managed by VanEck and primarily consist of overnight reverse repos and short-dated US repos, with the majority of assets custodied by State Street, ensuring a high degree of safety and scalability.

Regulations & Compliance

• 00:12:40 AUSD is built with an institutional-grade focus on compliance, particularly KYC and AML, adhering to relevant regulations. The team prioritizes compliance with regulations like those being developed in the US and implemented in the EU (MiCA). Unlike some stablecoins, Agora aims to share income with businesses rather than directly to users to comply with these evolving regulations.

Future of Payments & Stablecoins

• 00:19:43 Nick van Eck anticipates stablecoins will disrupt traditional money transfer services like Western Union and MoneyGram due to their lower fees, speed, and 24/7 accessibility. He foresees stablecoins being increasingly used in cross-border payments, FX, and other areas where fiat currencies have limitations. He sees a greater role for USD-backed stablecoins due to the US dollar's status as the world reserve currency.