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- Polygon partners with Agora to establish AUSD as the native stablecoin powering the AggLayer cross-chain ecosystem.
- Katana, built on AggLayer, uses AUSD to simplify DeFi yield strategies and unify liquidity across chains.
Polygon Labs has announced an official partnership with Agora and the AUSD stablecoin network, marking the next major step in the development of AggLayer—the cross-chain network they’ve been developing since last year.
AUSD has been designated as the primary stablecoin within AggLayer. This means all transactions between networks within the ecosystem can proceed seamlessly without the need to move assets over a digital bridge.
The stablecoin’s reserves are guaranteed by major institutions like State Street and VanEck, two names well-known in the traditional financial world. This approach is increasingly becoming a plus—especially for users or investors who are still unsure about fully decentralized financial systems.
Massive congratulations to the team!
Polygon Labs is proud to collaborate with Agora and the AUSD network. Excited for the next chapter as we continue to build out the Agglayer ecosystem together. https://t.co/XnEMcKVKqK
— Polygon (@0xPolygon) July 10, 2025
DeFi Just Got Faster and Smarter with Katana and Heimdall v2
But what makes this ecosystem even more compelling is the arrival of Katana. This is a new network built on AggLayer with a primary focus on the DeFi sector. AUSD immediately becomes a central part of this network, complete with yield distribution features for various strategies like Morpho and Sushi. So, not only are inter-network transfers simplified, but the potential profits from DeFi yields also flow directly to users.
Interestingly, the announcement of this partnership coincided almost simultaneously with the launch of Heimdall v2—Polygon’s biggest technical update since 2020. This update launched on July 10 and was one of the main reasons why the POL token surged 9.12% in 24 hours. With Heimdall v2, transaction finality on the network was drastically reduced from around 90 seconds to just 4–6 seconds.
Why DeFi Activity and Big Finance Are Flocking to Polygon
Furthermore, a report from CNF noted that Polygon has surpassed $100 billion in all-time volume on Uniswap. This is a strong signal that more and more DeFi users are starting to make Polygon their primary network. Furthermore, currently, over 17% of weekly USDC user activity occurs on the Polygon network. This means that users of this stablecoin are increasingly comfortable in their ecosystem.
Furthermore, Polygon’s dominance in the stablecoin sector is also increasingly evident. In the first half of 2025, more than 11.12 million P2P addresses were recorded interacting with stablecoins on this network. It’s no wonder that many financial institutions are starting to seriously collaborate with Polygon.
Franklin Templeton, for example, is one of the major players in the traditional financial sector that has begun partnering with Polygon to explore opportunities for tokenizing real-world assets.
Furthermore, last February, Polygon also launched a new technology called Pessimistic Proofs. This mechanism is designed to improve cross-chain security by ensuring that transactions are mathematically verified before they are processed. So, before any vulnerabilities arise, this system already mitigates potential downsides.
