Asset supervisor Galaxy and stablecoin issuer Agora accomplished the primary over-the-counter transaction involving AUSD, Agora’s stablecoin, in response to a Jan. 8 announcement.
“This commerce marks the transition of AUSD from proof-of-concept to real-world utility,” Nick van Eck, Agora’s CEO, said in an announcement.
Agora’s AUSD is the newest stablecoin in search of to seize market share from incumbents, reminiscent of Circle’s USD Coin (USDC) and Tether’s USDt (USDT). It joins different relative newcomers reminiscent of Ethena’s USDe.
Agora’s AUSD touts itself as a “builder-focused” stablecoin. Supply: Agora
Associated: Stablecoin adoption, ETFs to propel crypto performance in 2025: Citi
Rising stablecoin market
Stablecoin market capitalizations elevated sharply after President-elect Donald Trump’s US election win in November. Trump has promised to make America “the world’s crypto capital” and appoint pro-industry leaders to key regulatory posts.
In 2024, the mixed market capitalizations of the highest three stablecoins — USDT, USDC and Dai (DAI) — collectively grew by greater than $25 billion, largely throughout the fourth quarter, funding financial institution Citi stated in a December report.
As of Jan. 6, the full stablecoin market capitalization exceeds $210 billion, with USDT and USDC commanding market caps of roughly $137 billion and $45 billion, respectively, in response to CoinGecko.
Stablecoin issuance soared after Trump’s election win. Supply: Citi
DeFi use circumstances
The proliferation of stablecoins is especially bullish for decentralized finance (DeFi), as “stablecoins are the on-ramp to decentralized finance,” Citi stated.
DeFi protocol Ethena’s stablecoin, USDe, reached a market cap of roughly $6 billion in December, surpassing rival Sky’s (previously Maker) Dai stablecoin.
Analysts attribute USDe’s success to double-digit staking yields and potential DeFi use circumstances.
“Since February 2024, sUSDe holders have loved a mean APY of 17.5%, peaking at 55.9% (March 7, 2024) and bottoming at 4.3% (August 8, 2024),” cryptocurrency researcher Messari stated in a Dec. 12 notice.
Agora touts AUSD as a “builder-focused” stablecoin designed to draw merchants and builders with “gas-optimized” sensible contracts.
It additionally says the stablecoin is totally backed, with collateral held by one of many world’s largest asset managers and common reserve audits.
“As US laws round digital property take form,” Agora stated it goals to place “AUSD as a cornerstone of the institutional stablecoin market.”
Journal: How crypto laws are changing across the world in 2025
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