Nick van Eck, son of investment management giant Jan van Eck, is poised to launch a new stablecoin pegged to the US dollar. This comes after successfully securing $12 million in venture capital funding.

The stablecoin, named Agora digital dollar (AUSD), is targeting international markets with a focus on transparency and building trust. Unlike its competitor, Tether (USDT), AUSD will be fully backed by reserves of cash, US Treasury bills, and overnight repo agreements. Notably, VanEck, the $90 billion asset management firm led by Jan van Eck, will manage a dedicated fund for these reserves.

Interestingly, AUSD won’t be available in the United States for the time being. Nick van Eck has stated they’ll wait for comprehensive crypto regulations to be established before launching domestically.

This new venture sees Nick van Eck join forces with crypto veterans Drake Evans and Joe McGrady, who co-founded Agora. Nick will serve as CEO of the company. The $12 million funding round signifies strong investor interest in AUSD’s potential, particularly in light of ongoing scrutiny faced by some existing stablecoins. Whether AUSD can carve out a niche in the crowded stablecoin market with its focus on international users and transparency remains to be seen.