The post Agora AUSD to Launch on Ethereum, Introducing Stablecoin 3.0 appeared on BitcoinEthereumNews.com.

Nick van Eck, CEO of Agora and son of asset management giant VanEck, will launch US dollar-pegged stablecoin AUSD on the Ethereum network in June. This move introduces the concept of Stablecoin 3.0, aiming to revolutionize the digital dollar market. Stablecoin 3.0: How AUSD Plans to Address Challenges in Utility and Acceptance Agora envisions digital dollars becoming the dominant currency globally, starting with the Eurodollar market. In a recent blog post, Van Eck projects Agora’s AUSD model to lead this transformation by 2030, with the stablecoin market expected to grow from $150 billion to $3 trillion. According to van Eck, stablecoins have evolved significantly over the past decade. Stablecoin 1.0 began with Tether (USDT), which introduced centralized digital dollars. Read more: What Is a Stablecoin? A Beginner’s Guide Following this, the era of Stablecoin 2.0 came, represented by USDC and BUSD. They offered greater transparency and licensing but retained a single-partner distribution model. However, this model often led to conflicts of interest, as substantial economic benefits were shared with major competitors.  Stablecoin 2.0 issuers benefited from rising interest rates, but the advent of “yield-bearing stablecoins” presented new challenges. Many jurisdictions classify these products as securities, limiting their utility, acceptance, and liquidity. They also struggle to sustain business models and develop ecosystems due to insufficient margins. “Despite being dollar-denominated, these products are essentially yield products. They may attempt to brand themselves as stablecoins or to be used as a means of payment or trading, but they are unlikely to achieve substantial demand in these areas. Substantial demand being subjectively defined as being used by traditional corporates, financial service firms, and $25 – $50 billion of circulating supply,” van Eck noted. Van Eck emphasized that businesses are the real drivers of utility and liquidity for stablecoins. Agora’s AUSD represents Stablecoin 3.0, designed…

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Filed under: News - @ May 29, 2024 8:22 am