Van Eck heir to launch stablecoin backed by investment firm’s endorsement

Like its counterparts, Agora’s stablecoins will be backed by cash, U.S. Treasury bills, and overnight repurchase agreements.

“There is a need to have transparent and trustworthy institutions managing the assets of these digital dollars,” said Kyle DaCruz, director of digital assets product at VanEck, emphasizing the importance of transparency and trust in the stablecoin market, as evidenced by VanEck’s management of Agora’s reserves.

Despite the dominance of incumbents like Tether and USDC, Van Eck sees ample opportunity for Agora to carve its niche. The company intends to eschew direct customer acquisition to forge partnerships with established crypto exchanges. Agora added that it has no plans to issue a governance token.

Van Eck emphasized Agora’s commitment to equitable partnerships, opting for income-sharing arrangements with collaborators. Unlike some projects in the stablecoin sector, Agora does not directly reward holders with yields or income.

Notable contributors to the equity round include General Catalyst and Robot Ventures.