YZi Labs Invests in Avalon Labs
YZi Labs Invests in Avalon Labs to Advance Bitcoin Finance
YZi Labs, the venture capital arm formerly known as Binance Labs, announced a strategic investment in Avalon Labs. Avalon Labs is a rapidly growing on-chain capital markets platform specializing in Bitcoin-backed financial services. While the financial terms remain undisclosed, the investment underscores YZi Labs' commitment to innovative projects in the Bitcoin space.
Key Takeaways
- YZi Labs invests in Avalon Labs, a Bitcoin-backed financial services platform.
- Avalon Labs is building the first fully regulated on-chain Bitcoin financial institution.
Avalon Labs offers a range of CeDeFi (Centralized Decentralized Finance) services, including:
- Bitcoin-backed lending
- Stablecoins (e.g., USDa)
- Yield-generating savings accounts
- A credit card
This allows Bitcoin holders to access liquidity without selling their holdings, utilizing USDa—Avalon's flagship Bitcoin-backed stablecoin.
Impressive Growth Metrics
Avalon's USDa boasts approximately $613 million in Total Value Locked (TVL), solidifying its position as the second-largest Collateralized Debt Position (CDP) stablecoin project, trailing only Sky's USDS. This substantial TVL is distributed across multiple blockchains, including Ethereum, BNB Smart Chain, Bitcoin, and Mantle.
The largest portions of USDa's TVL are currently on Ethereum and BNB Smart Chain, each holding hundreds of millions in collateral.
Alex Odagiu, Investment Director at YZi Labs, highlighted Avalon's technical expertise and long-term vision as key factors driving the investment:
“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,”
Avalon's Future Plans
Avalon Labs plans to utilize the investment to achieve regulatory compliance in multiple jurisdictions and expand its institutional lending services. Their ultimate goal is to become the first fully regulated on-chain Bitcoin financial institution.
Venus Li, co-founder of Avalon Labs, expressed gratitude for YZi Labs' support and emphasized Avalon's commitment to innovation and growth:
“We’re grateful for YZi Labs’ support as we continue building the premier financial hub for Bitcoin. As pioneers in Bitcoin finance, we aim to introduce fresh capital and new participants.”
This investment follows Avalon's strategic partnership with Bybit, integrating its CeDeFi protocol into the Bybit Earn platform. Avalon's participation in the Most Valuable Builder (MVB) program, co-led by BNB Chain, YZi Labs, and CoinMarketCap, further showcases its potential.
YZi Labs, managing over $10 billion in assets globally, has a portfolio of over 300 projects in 25 countries. Binance co-founder Changpeng "CZ" Zhao serves as an advisor to YZi Labs.
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