Van Eck heir to launch stablecoin backed by investment firm’s endorsement

Nick Van Eck has ventured into stablecoins with the backing of his family’s esteemed business.

Agora, the brainchild of Van Eck and crypto stalwarts Drake Evans and Joe McGrady, recently secured $12 million in seed funding, spearheaded by digital-asset venture firm Dragonfly.

Operating under a Delaware incorporation with its stablecoin issuer headquartered in the British Virgin Islands, Agora’s stablecoin will cater exclusively to non-U.S. users for the time being.

“Until there’s federal legislation for stablecoins in the U.S., we’re going to focus primarily on customers outside of the U.S.,” Van Eck said in a press release.

Like its counterparts, Agora’s stablecoins will be backed by cash, U.S. Treasury bills, and overnight repurchase agreements.

“There is a need to have transparent and trustworthy institutions managing the assets of these digital dollars,” said Kyle DaCruz, director of digital assets product at VanEck, emphasizing the importance of transparency and trust in the stablecoin market, as evidenced by VanEck’s management of Agora’s reserves.

Despite the dominance of incumbents like Tether and USDC, Van Eck sees ample opportunity for Agora to carve its niche. The company intends to eschew direct customer acquisition to forge partnerships with established crypto exchanges. Agora added that it has no plans to issue a governance token.

Van Eck emphasized Agora’s commitment to equitable partnerships, opting for income-sharing arrangements with collaborators. Unlike some projects in the stablecoin sector, Agora does not directly reward holders with yields or income.

Notable contributors to the equity round include General Catalyst and Robot Ventures.