VanEck Ventures into Stablecoin Territory: What's the Strategy Behind the Expansion?

In a notable development, Nick Van Eck, son of investment management veteran Jan Van Eck, is spearheading a significant venture into cryptocurrencies through the family business. Agora, a startup co-founded by VanEck, alongside crypto experts Drake Evans and Joe McGrady, secured $12 million in seed funding to introduce its USD stablecoin.

VanEck Launches Agora Stablecoin for Underserved Markets, Excluding U.S. Users

Agora's stablecoin will be backed by cash, US Treasury bills, and overnight repurchase agreements, managed by VanEck. Emphasizing transparency, director Kyle DaCruz stresses the importance of audited reserves. Agora plans to collaborate with various crypto entities, avoiding direct customer targeting.

While Tether and USDC dominate, Agora aims to address underserved regions like Argentina and Southeast Asia. Notably, the stablecoin will exclude US users due to regulatory ambiguity. VanEck prioritizes regulatory clarity and intends to serve international clients until regulatory frameworks are established.

VanEck's Agora Stablecoin Proposes Profit-Sharing Pact with Partners, Eyes Industry Stability Amid Record March Bitcoin ETF Volume

Agora proposes income-sharing contracts with partners, bypassing direct returns to individual holders. VanEck voices concerns over unstable projects in the sector, advocating for industry advancement.

March witnessed a remarkable surge in spot Bitcoin ETF trading, reaching $111 billion, nearly tripling February's figures. ETF expert Eric Balchunas highlights this milestone on social media, underlining the industry's growth trajectory.

The surge in Bitcoin ETF trading reflects rising demand for crypto investment products. With investors seeking regulated avenues, ETFs emerge as favored vehicles.