VanEck, the issuer of a recently approved Bitcoin ETF in the US, will manage the reserve fund for Agora Dollar (AUSD), a new stablecoin venture. AUSD raised $12 million in a funding round led by Dragonfly, founded by Nick Van Eck, son of investment manager Jan Van Eck, along with Drake Evans and Joe McGrady.

AUSD aims to disrupt the market with its customer-centric approach within a compliant structure. It emphasizes regulatory compliance and plans to operate in select markets outside the US. The stablecoin's reserve fund will be managed by a major global custodian, ensuring remote bankruptcy, trust-held assets, and regular audits.

The stablecoin market is growing, attracting attention from major players like PayPal and projects in decentralized finance (DeFi). Total market capitalization has increased by 15% year-to-date to around $150 billion. Tether's USDT dominates with over 69% market share, while Circle's USDC has seen a resurgence, reaching $32.7 billion in supply in the first quarter. Newcomers like Ethena's USDe synthetic dollar are gaining traction with their attractive yield model.