Van Eck is making significant investments in stablecoins, a relatively new form of cryptocurrency. To strengthen the investment case, Agora secured $12 million in funding under the guidance of Dragonfly.

Van Eck will serve as the fund manager for Agora's stablecoin reserves. Nick Van Eck, whose father, Jan Van Eck, is an experienced financial management expert, aims to uphold the family firm's legacy while increasing their cryptocurrency investments.

In a move into the competitive stablecoin market, a former General Catalyst partner joins the fray. The initiative seeks to shield customers from the inherent volatility of the cryptocurrency realm by providing opportunities for assets such as the dollar.

Agora, co-founded by cryptocurrency experts Joe McGrady and Drake Evans, raised $12 million in a seed fund round led by Dragonfly. The investment from General Catalyst and Robot Ventures was part of this equity round.

Agora's stablecoin issuer is based in the British Virgin Islands, while the parent company is incorporated in Delaware. Only users outside the US will have access to the stablecoin.

Similar to other reputable stablecoins, Agora's USD stablecoins will be backed by US Treasury notes, cash, and overnight repurchase agreements. VanEck's digital assets division, led by Kyle DaCruz, will oversee a fund for Agora's reserves.

DaCruz emphasized the importance of openness, reliability, and transparency in organizations overseeing digital dollar assets. VanEck is eager to assist Agora in establishing transparent and audited stablecoin reserves that will shape the future of stablecoins.

While Tether dominates the stablecoin market as the second most traded cryptocurrency, USDC boasts a market value of approximately $32 billion, while Tether, backed by Circle Internet Financial, has a market value of up to $104 billion. Van Eck sees potential for another player in the stablecoin market.

Agora aims to focus less on acquiring global customers directly and more on forming partnerships with various cryptocurrency businesses, such as exchanges. Agora does not plan to release government tokens due to their complex designs. The company seeks to enter into revenue-sharing agreements with its partners, with no direct dividends available to holders.