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May 26, 2025 – YZi Labs, the rebranded investment arm of Binance, has announced a strategic investment in Avalon Labs (@avalonfinance_), an innovative on-chain capital market for Bitcoin. This partnership is set to accelerate Avalon Labs' mission to build a scalable, transparent, and accessible financial network, unlocking Bitcoin’s vast economic potential and transforming it from a passive store of value into a dynamic financial asset for global markets.
Avalon Labs is rapidly emerging as a prominent force in the Bitcoin DeFi ecosystem. The platform offers a comprehensive suite of financial products, including Bitcoin-backed lending, the USDa stablecoin, yield-generating savings accounts, and a credit card. With over 20,000 Bitcoins currently serviced and a vibrant community of more than 300,000 active users, Avalon Labs is demonstrating significant traction in making Bitcoin more usable in everyday financial applications. The total value locked (TVL) within the Avalon ecosystem has surpassed $500 million, with its flagship Bitcoin-backed stablecoin, USDa, ranking as the second-largest Collateralized Debt Position (CDP) project on DeFiLlama.
The investment from YZi Labs, a global firm managing over $10 billion in assets with a portfolio of over 300 projects across 25 countries, underscores Avalon Labs' strong fundamentals and its potential to revolutionize the financial landscape. YZi Labs is known for backing projects with the capacity for transformative industry impact and long-term value creation. Avalon Labs was also a participant in Season 8 of the Most Valuable Builder (MVB) program, an incubator co-led by BNB Chain, YZi Labs, and CoinMarketCap.
"At YZi Labs, we back projects with strong fundamentals that have the potential to revolutionize industries and create long-term impact," said Alex Odagiu, Investment Director at YZi Labs. "Avalon exemplifies this by leveraging Bitcoin’s security and liquidity to build a fully integrated financial ecosystem -- bridging the gap between Bitcoin’s vast potential and real-world usability, and transforming it into an active economic asset for global markets."
USDa: Unlocking Bitcoin's Liquidity with Stability and Yield
At the heart of Avalon Labs' ecosystem is USDa, a Bitcoin-backed stablecoin designed to provide Bitcoin holders with instant liquidity, the stability of a fixed borrowing rate (currently 8%), and sustainable DeFi yields. This allows users to unlock the value of their Bitcoin without needing to sell their holdings, retaining asset ownership while gaining access to capital.
Key features that make USDa special include:
- Fixed Borrow Rate: An 8% fixed borrowing rate offers predictability for users.
- Sustainable Yield: USDa enables users to earn sustainable yields.
- Omnichain Compatibility: Powered by LayerZero, USDa offers cross-chain usability on major networks including Ethereum, BNB Chain, Mantle, and Core Blockchain.
- Reliable Conversion: USDa maintains a reliable 1:1 conversion to USDT.
- Unlimited Supply: The supply of USDa can scale with demand.
Avalon Labs' CeDeFi approach combines the strengths of centralized and decentralized finance to offer stable and predictable services. The platform is live on multiple blockchains, including Ethereum, BNB Chain, Mantle, Merlin Chain, Arbitrum, and Bitlayer, with plans for further expansion.
Strategic Growth and Regulatory Compliance
With this new injection of capital, Avalon Labs is poised for mass adoption. A key focus will be achieving full regulatory compliance across multiple jurisdictions. This includes securing necessary licenses and collaborating with leading law firms to prepare for the potential launch of a public fund, potentially exploring frameworks like the SEC's Regulation A exemption. Simultaneously, Avalon Labs will accelerate the growth of its institutional lending business, with the ambitious goal of becoming the first fully regulated on-chain Bitcoin financial institution.
Venus Li, Co-Founder of Avalon Labs, commented, “We’re grateful for YZi Labs’ support as we continue building the premier financial hub for Bitcoin. Our industry thrives on both user growth and capital inflow, and we constantly challenge ourselves to contribute beyond just capturing existing market share. As pioneers in Bitcoin finance, we aim to introduce fresh capital and new participants. Bitcoin, widely recognized as ‘digital gold,’ holds unique global acceptance. By bringing Bitcoin-backed products into everyday life, we will unlock yield opportunities for non-crypto users, seamlessly bridging Bitcoin with the real world and driving mass adoption.”
Avalon Labs is also committed to security, with its code thoroughly audited by top global security firms such as BlockSec, Slowmist, and Salus. The platform also partners with a 24/7 on-chain security guard to ensure continuous protection for its ecosystem and users.
Fundraising History
Prior to this investment from YZi Labs, Avalon Labs has had successful funding rounds. In March 2024, the company completed a seed funding round. [12] This was followed by a significant Series A funding round in December 2024, where Avalon Labs raised $10 million, led by Framework Ventures and with participation from investors including UTXO Management, Presto Labs, Kenetic Capital, SNZ Holding, Antalpha Global, Summer Ventures, Comma3 Ventures, GeekCartel, MARBLEX, and Trinito.
Looking Ahead
The collaboration between YZi Labs and Avalon Labs marks a significant step forward in bridging the gap between traditional finance and the burgeoning world of Bitcoin DeFi. By focusing on regulatory compliance, institutional adoption, and user-centric product development, Avalon Labs is well-positioned to unlock the next evolution of Bitcoin-powered finance, making it more accessible, secure, and useful for a global audience.
About YZi Labs
YZi Labs (formerly Binance Labs) manages over $10 billion in assets globally. Its investment philosophy emphasizes impact first, believing that meaningful returns will naturally follow. YZi Labs invests in ventures at every stage, prioritizing those with solid fundamentals in Web3, AI, and healthcare. The YZi Labs portfolio covers over 300 projects from more than 25 countries across six continents, with over 65 portfolio companies having gone through its incubation programs. YZi Labs is dedicated to supporting founders and driving transformative innovation.
About Avalon Labs
Avalon Labs is building the premier on-chain financial center for Bitcoin, offering a seamless ecosystem that includes BTC-backed lending, a Bitcoin-backed stablecoin (USDa), yield-generating accounts, and a credit card. The company is committed to creating a scalable, transparent, and accessible financial network that transforms Bitcoin into an active economic asset across global markets. Avalon Finance, part of the Avalon Labs ecosystem, is also a leading decentralized lending protocol on Merlin Chain.
Compiled by CMO Intern team
