Introducing AUSD: Injective's First Native Stablecoin Backed by VanEck and Custodied by State Street

The stablecoin aims to enhance the efficiency and reliability of transactions within the Injective ecosystem.

Injective has announced the launch of AUSD, the first native stablecoin on Injective. Backed by VanEck and custodied by State Street, AUSD aims to enhance liquidity between DeFi and TradFi markets.

The stablecoin is fully collateralized by a diverse range of assets, including cash, U.S. Treasury bills, and overnight reverse repurchase agreements. VanEck, a leading asset management firm with $100 billion in AUM, will oversee the reserve management, while State Street, with $4.1 trillion in AUM, will provide custodial services.

Each AUSD token is designed to be redeemable for one U.S. dollar, offering users a stable and reliable store of value within the Injective ecosystem.

According to the announcement, users will be able to easily acquire, trade, and sell AUSD without encountering bridging issues that can hinder the movement of funds. This integration will enable AUSD to become widely available across various decentralized applications (dApps), including decentralized exchanges (DEXs), staking, and lending protocols.

Since its launch, AUSD's circulating supply has reportedly surged to over $65 million, with daily trading volumes exceeding $15 million across multiple blockchains, including Ethereum, Avalanche, and Sui.

The stablecoin market has emerged as the third largest sector in the cryptocurrency ecosystem, valued at over $170 billion. AUSD's entry into the market further reinforces the dominance of U.S. dollar-backed stablecoins, which currently hold 99.7% of the market share.

Injective's high-throughput infrastructure ensures that users can execute transactions in real-time, as highlighted in the recent announcement. Notably, Injective has achieved a milestone of over 1 billion on-chain transactions this year.

Recently, Paxos also introduced Wrapped $USDL (wUSDL) to Injective, offering a stablecoin that combines stability and yield. The stablecoin provides a secure 1:1 backing for each dollar held in reserves.

In September, Injective also launched the BUIDL Index, which is reportedly the world's first perpetual market designed to track BlackRock's $BUIDL Fund supply.

The index offers 24/7 exposure to tokenized assets, including U.S. treasuries, with leverage options, as described by Injective.