Agora

Stablecoin

2024

Injective

AUSD

Injective&nbsp;<a style="text-decoration:none" href="https://blog.injective.com/en/agora-to-launch-native-us-dollar-stablecoin-on-injective/">announced</a> the launch of its first native stablecoin, Agora’s fully collateralized U.S. digital dollar, AUSD.&nbsp;
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 <blockquote class="twitter-tweet">
 1/ Introducing the first native stablecoin on Injective: <a href="https://twitter.com/search?q=%24AUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$AUSD</a> Backed by VanEck and custodied by State Street, <a href="https://twitter.com/withAUSD?ref_src=twsrc%5Etfw">@withAUSD</a> bolsters liquidity between DeFi and TradFi markets while also providing a seamless on-ramp for Injective dApps globally. <a href="https://t.co/cV480alIA7">pic.twitter.com/cV480alIA7</a>— Injective 🥷 (@injective) <a href="https://twitter.com/injective/status/1851992581166551276?ref_src=twsrc%5Etfw">October 31, 2024</a>
 </blockquote> 
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The stablecoin aims to enhance the efficiency and reliability of transactions within the Injective ecosystem.
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 “The launch of AUSD on Injective underscores the dominance of USD-backed stablecoins—with 99.7% market share—as an institutional-grade asset for capital formation and movement,” said Nick van Eck, CEO and Co-Founder of Agora
</blockquote>
<h2 dir="ltr" id="span-span-ausd-a-reliable-stablecoin-span-span">AUSD: A Reliable Stablecoin?</h2>
AUSD is backed by a diverse range of assets, including cash, U.S. Treasury bills, and overnight reverse repurchase agreements. The reserve management is entrusted to VanEck, a prominent asset management firm with $100 billion in assets under management (AUM), while State Street, overseeing $4.1 trillion AUM, provides custodial services.&nbsp;
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Each AUSD token is designed to be redeemable for one U.S. dollar, providing users with a sense of stability.
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Per reports, users will be able to acquire, trade, and sell AUSD without encountering bridging issues that can hinder the movement of funds. This integration allows AUSD to become widely available across various decentralized applications (dApps), including decentralized exchanges (DEXs), staking, and lending protocols.
<h2 dir="ltr" id="span-span-market-context-and-growth-span-span">Market Context and Growth</h2>
Since its inception, AUSD's circulating supply has surged to over $65 million, with daily trading volumes exceeding $15 million across multiple blockchains such as Ethereum, Avalanche, and Sui.&nbsp;
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The stablecoin market has become the third largest sector in the cryptocurrency ecosystem, valued at over $170 billion. AUSD’s entry into the market reinforces the dominance of U.S. dollar-backed stablecoins, which currently hold 99.7% market share.
<h2 dir="ltr" id="span-span-advantages-of-injective-s-infrastructure-span-span">Advantages of Injective's Infrastructure</h2>
Injective low transaction fees and fast throughput ensures that users can execute transactions in real-time, according to the recent announcement. Worth noting, Injective has also achieved a milestone of over 1 billion on-chain transactions this year.
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Moreover, recently, Paxos&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/paxos-launches-yield-bearing-wrapped-usdl-on-injective">introduced</a> Wrapped $USDL (wUSDL) to Injective. Wrapped $USDL is a stablecoin designed to offer stability and yield. The stableocoin offers a secure 1:1 backing for each dollar held in reserves.&nbsp;
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Additionally, last September, Injective&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/injective-launches-world-s-first-ever-tokenized-index-for-black-rock-s-buidl-fund">launched</a> the BUIDL Index. According to reports, this is the world's first perpetual market designed to track BlackRock's $BUIDL Fund supply.&nbsp;
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This index offers unprecedented 24/7 exposure to tokenized assets, including U.S. treasuries, with leverage options, according to Injective.

Injective Unveils AUSD: The First Native Stablecoin on Its Blockchain

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