According to Odaily Planet Daily, Agora CEO Nick van Eck believes that stablecoin issuers that provide holders with passive income ignore the core mission of stablecoins. He explained in a Medium article on May 27 that these companies should focus on utility, liquidity and means of trading to benefit as many individuals and businesses as possible. Interest-bearing stablecoins provide a new dimension for DeFi users seeking to earn interest, but van Eck said that such products may be classified as securities products in many countries, thus limiting the customer range. He added: "This not only deprives you of your customers, but also deprives you of your liquidity providers, suppliers, and a higher utility ceiling. Your product cannot be traded freely. Regulated financial services companies outside the United States are unlikely to use your product because it brings risks without providing sufficient returns." Van Eck said that Agora will launch the Agora Digital Dollar (AUSD) on Ethereum in June and try to cooperate with as many cryptocurrency exchanges, trading companies and fintech companies as possible. AUSD will be fully backed by cash, U.S. Treasury bills and overnight repurchase agreements. Earlier in April, it was reported that Agora completed a $12 million seed round of financing, led by Dragonfly, with participation from General Catalyst and Robot Ventures.
