YZi Labs has invested in Avalon Labs, an on-chain capital market for Bitcoin, building a scalable, transparent, and accessible financial network that unlocks Bitcoin’s economic potential.
As the world’s issuer of Bitcoin-backed stablecoins, Avalon is transforming Bitcoin from “a passive store of value into a dynamic financial asset, driving real-world adoption and utility across global markets.”
Avalon was part of Season 8 Most Valuable Builder (MVB), “the incubation program co-led by BNB Chain, YZi Labs and CoinMarketCap.”
Today, the Avalon ecosystem “encompasses Bitcoin-backed lending, a Bitcoin-backed stablecoin, yield-generating savings accounts, and a credit card.”
With more than 20,000 Bitcoins currently serviced and over 300,000 active users, Avalon claims it is becoming “one of the most prominent projects in the Bitcoin DeFi ecosystem.”
With over $500 million in total value locked (TVL), Avalon’s product, the Bitcoin stablecoin USDa, “now ranks as the second-largest CDP (Collateralized Debt Position) on DeFiLlama.”
USDa is designed to offer Bitcoin holders seamless liquidity access, stability, and yield, enabling users “to unlock the value of their Bitcoin without the need to sell.”
With the raised capital, Avalon says it is gearing up for “mass adoption.”
Avalon will begin its journey toward “full regulatory compliance across multiple jurisdictions, securing necessary licenses and collaborating with top-tier law firms to prepare for the launch of a public fund.”
At the same time, Avalon will accelerate the “growth of its institutional lending business, with the goal of becoming the first fully regulated on-chain Bitcoin financial institution.”
Alex Odagiu, Investment Director at YZi Labs said:
“At YZi Labs, we back projects with strong fundamentals that have the potential to revolutionize industries and create long-term impact. 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.”
As key players in Bitcoin finance, they 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, they will unlock yield opportunities for “non-crypto users, seamlessly bridging Bitcoin with the real world and driving mass adoption.”
YZi Labs manages over “$10 billion assets globally.”
Their investment philosophy emphasizes “impact first — they believe that meaningful returns will naturally follow.”
They invest in ventures at every stage, “prioritizing those with solid fundamentals in Web3, AI, and healthcare.”
YZi Labs’ portfolio covers over “300 projects from over 25 countries across six continents.”
More than 65 of YZi Labs’ portfolio companies “have gone through our incubation programs.”
Avalon Labs is building the on-chain financial center for Bitcoin, offering a seamless ecosystem “that includes BTC-backed lending, a Bitcoin-backed stablecoin, yield-generating accounts, and a credit card.”
They’re committed to creating a “scalable, transparent, and accessible financial network that transforms Bitcoin into an active economic asset across global markets.”