Crypto venture firm Paradigm leads investment in AUSD issuer
Stablecoin startup Agora has secured $50 million in Series A funding to scale its white label stablecoin platform. The round was led by prominent crypto venture firm Paradigm, with participation from Dragonfly Capital. The funding aims to accelerate adoption of Agora’s AUSD stablecoin infrastructure, which enables businesses to create their own branded digital currencies.
Agora was founded by Nick van Eck, the son of VanEck CEO Jan van Eck, along with experienced crypto professionals Drake Evans and Joe McGrady. The company’s vision is to build a decentralised and collaborative ecosystem for stablecoin issuance, offering shared liquidity, cross-platform interoperability, and revenue-sharing with partners.
Focus on infrastructure and partnerships
Unlike competitors that start with a consumer-facing coin, Agora’s approach centres on building a network-first model. Its white label platform allows partners to launch their own stablecoins using AUSD’s underlying architecture. This model enables seamless interaction between multiple branded coins and offers institutions a compliant, efficient alternative to issuing digital dollars.
COURTESY OF AGORA
“We always had the view that we were going to do white-labelled issuance differently,” van Eck told Fortune. “What we wanted to do is really something novel, which is start by building the network.”
Agora has already partnered with projects such as Polygon to issue custom stablecoins and is looking to expand its reach beyond the blockchain sector. The firm expects to attract financial institutions and businesses in emerging markets where local currencies face volatility and cross-border payments are costly and inefficient.
Standing out in a crowded market
Agora is entering a highly competitive stablecoin space currently dominated by USDC from Circle and USDt from Tether, which hold market caps of $62 billion and $158 billion respectively. Agora, in comparison, has a market cap below $130 million. However, its business model differs by focusing on enabling others to issue their own stablecoins rather than directly competing for user adoption.
Major technology players including Meta, Google, Apple, and Elon Musk’s platform X have expressed interest in the stablecoin sector. Even political figures have entered the space, with World Liberty Financial, co-founded by Donald Trump and his family, launching the USD1 stablecoin. Against this backdrop, Agora’s strategy of infrastructure over direct competition could prove to be a key differentiator.
International markets and regulatory outlook
With regulatory uncertainty continuing in the United States, Agora has turned its attention to international markets. Van Eck noted that many overseas financial institutions are exploring stablecoins more actively than their American counterparts. “A lot of different financial institutions outside of the US, I would say, are looking more aggressively and will be quicker to move than some of the companies in the US,” he said.
Nonetheless, the company is preparing to enter the US market if regulatory conditions improve. Agora is in the process of acquiring money transmitter licences and monitoring legislation such as the proposed GENIUS Act, which could create a federal framework for stablecoins.
Real-world adoption begins
Agora’s stablecoin AUSD recently achieved a key milestone when asset manager Galaxy completed the first over-the-counter trade using it. The move signals that AUSD is transitioning from concept to practical application, a significant step for any new stablecoin issuer.
Agora launched in April last year with $12 million in seed funding, led by Dragonfly and supported by Robot Ventures, Wintermute, Breed, and General Catalyst, where van Eck previously worked as a partner.
In contrast to leading stablecoins like USDC and USDt, Agora takes a collaborative approach to revenue. It shares yield generated from reserve assets with partners that help distribute and support the AUSD ecosystem. “One of the things we believed in the very beginning was that stablecoins should be run like public goods,” said co-founder Drake Evans. “That means the lion’s share of the revenue gets passed to the people who are providing value.”
As the market for dollar-backed digital assets continues to expand, Agora’s infrastructure-focused model and commitment to shared value may help it carve out a niche in the global stablecoin economy.
