Asset manager Galaxy and stablecoin issuer Agora completed the first over-the-counter transaction involving AUSD, Agora’s stablecoin, according to a Jan. 8 announcement.
“This trade marks the transition of AUSD from proof-of-concept to real-world application,” Nick van Eck, Agora’s CEO, said in a statement.
Agora’s AUSD is the latest stablecoin seeking to capture market share from incumbents, such as Circle’s USD Coin (USDC) and Tether’s USDt (USDT). It joins other relative newcomers such as Ethena’s USDe.
Agora’s AUSD touts itself as a “builder-focused” stablecoin. Source: Agora
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Growing stablecoin market
Stablecoin market capitalizations increased 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 combined market capitalizations of the top three stablecoins — USDT, USDC and Dai (DAI) — collectively grew by more than $25 billion, largely during the fourth quarter, investment bank Citi said in a December report.
As of Jan. 6, the total stablecoin market capitalization exceeds $210 billion, with USDT and USDC commanding market caps of roughly $137 billion and $45 billion, respectively, according to CoinGecko.
Stablecoin issuance soared after Trump’s election win. Source: Citi
DeFi use cases
The proliferation of stablecoins is particularly bullish for decentralized finance (DeFi), as “stablecoins are the on-ramp to decentralized finance,” Citi said.
DeFi protocol Ethena’s stablecoin, USDe, reached a market cap of approximately $6 billion in December, surpassing rival Sky’s (formerly Maker) Dai stablecoin.
Analysts attribute USDe’s success to double-digit staking yields and potential DeFi use cases.
“Since February 2024, sUSDe holders have enjoyed an average APY of 17.5%, peaking at 55.9% (March 7, 2024) and bottoming at 4.3% (August 8, 2024),” cryptocurrency researcher Messari said in a Dec. 12 note.
Agora touts AUSD as a “builder-focused” stablecoin designed to attract traders and developers with “gas-optimized” smart contracts.
It also says the stablecoin is fully backed, with collateral held by one of the world’s largest asset managers and regular reserve audits.
“As US regulations around digital assets take shape,” Agora said it aims to position “AUSD as a cornerstone of the institutional stablecoin market."
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