Stablecoin company Agora has launched the AUSD stablecoin as the native currency of Polygon’s AggLayer, a cross-chain settlement network, to enable multi-chain transactions via fiat-backed stable assets.

The partnership aims to eliminate the need for token bridges, simplifying and standardizing liquidity for developers and end users in the AggLayer onchain community.

Agora is a stablecoin startup co-founded by Nick van Eck, Drake Evans, and Joe McGrady. Custodians including State Street and VanEck support the institutional-grade AUSD stablecoin.

This development is significant for users of AggLayer – designed to allow different chains to connect and interact – as it aims to make Web3 more accessible and competent to raise mainstream adoption.

Related: Magic Labs and Polygon Launch Clever Crosschain Wallet for AggLayer

Implications of AUSD integration

By integrating AUSD with AggLayer to become the crosschain’s native stablecoin, developers and users could see reduced transaction costs and smoother cross-chain interactions.

Chains connected to AggLayer can access AUSD without additional fees or bridging process requirements, reducing financial and time costs.

In an interview with Cointelegraph, an Agora spokesperson explained that AUSD will enable “participating companies” in AggLayer to “generate revenue directly from its use.”

“This allows networks on AggLayer to benefit from stablecoin revenues rather than from a centralized issuer. Since Agora agrees to make it available natively for AggLayer, AUSD will not require any new costs or development work for networks that want a high-quality stablecoin on their chains.

Related: Polygon and Fabric join forces to quickly implement a ZK-resistant solution in AggLayer

The impact of the Web3 community

For developers building applications on the AggLayer platform, AUSD’s goal is to provide a reliable store of value and a stable payment method that can be integrated with decentralized applications.

In a press release shared with Cointelegraph, Nick van Eck stated that the AUSD integration “is about building a more egalitarian economic network” in which revenues are “shared among network participants.”

This would mean that AggLayer users should expect to benefit from participating in a network where the use of AUSD rewards the Web3 community rather than a centralized publisher.

Related: “Revenue-producing stablecoins” are not money or stablecoins: Agora’s van Eck

AggLayer is transferred to ZK

Polygon Labs, a software development company focused on building AggLayer and the Polygon ecosystem, partnered with startup Fabric Cryptography on September 10 to bring zero-knowledge proofs to AggLayer.

The integration of Fabric verifiable processing units with AggLayer aims to improve the user experience for developers and end users by increasing security and reducing costs.

Mihailo Bjelic, co-founder of Polygon, told Cointelegraph about the importance of this development, explaining that “what would have taken three to five years can now happen in just six to 12 months.”

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