YZi Labs Invests in Avalon Labs to Boost Bitcoin On-Chain Finance

TL;DR

• YZi Labs announced a strategic investment in Avalon Labs to boost Bitcoin-backed on-chain financial services.
• Avalon Labs manages over 20,000 BTC and offers stablecoins, loans, and Bitcoin yield accounts.
• The investment will allow Avalon to speed up its regulatory expansion and grow its institutional Bitcoin lending business.

YZi Labs has announced a strategic investment in Avalon Labs, a company building an on-chain capital market powered by Bitcoin.

The goal is to turn Bitcoin, historically used as a store of value, into an active financial asset with direct applications in the digital economy. This partnership aims to drive adoption of Bitcoin-backed financial products and open new liquidity opportunities without requiring holders to sell their underlying BTC.

Why Avalon Labs?

Avalon Labs currently manages more than 20,000 Bitcoins and has a base of 300,000 active users. Its services include BTC-collateralized loans, yield-bearing savings accounts, a credit card, and USDa — a Bitcoin-backed stablecoin. USDa has become the second-largest CDP on DeFiLlama, with over $500 million in total value locked. Its purpose is to offer stability, instant liquidity, and yield opportunities to users who want to keep holding Bitcoin while accessing other financial tools.

The company plans to use this new capital to accelerate its institutional growth and secure regulatory licenses in multiple jurisdictions. It also aims to launch a public fund and expand its large-scale lending business, with the goal of becoming the first fully regulated Bitcoin-based financial institution. Its strategy focuses on attracting external capital and onboarding new users beyond the crypto-native audience, offering solid financial products backed by digital assets.

YZi Labs: Incubating High-Potential Ventures

Avalon Labs took part in the eighth edition of the MVB program, led by BNB Chain, YZi Labs, and CoinMarketCap — a key opportunity to strengthen its model and expand its financial ecosystem. Today, it stands out as one of the most prominent DeFi projects focused on Bitcoin, building a complete financial network on its blockchain.

YZi Labs, meanwhile, manages over $10 billion in assets globally, with a portfolio spanning Web3, AI, and healthcare. The firm backs ventures with solid fundamentals and the potential to create lasting impact within targeted industries

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