BCGAME - Free 5BTC Daily Bonus!- YZi Labs Invests in Decentralized Finance with Bitcoin
- Avalon’s USDa Stablecoin Surpasses $600 Million in TVL
- Avalon seeks regulation as an on-chain financial institution
YZi Labs, the venture capital arm formerly known as Binance Labs, has announced a strategic investment in Avalon Labs, a financial services platform that integrates on-chain capital markets solutions with a focus on Bitcoin. While details of the investment amount were not disclosed, the move reflects the growing interest in CeDeFi models — decentralized finance with regulatory compliance.
— YZi Labs (@yzilabs) May 26, 2025
Avalon Labs offers a hybrid framework that combines blockchain security with traditional instruments, allowing users to obtain immediate liquidity without having to sell their Bitcoins. The operation is made possible by stablecoins backed by the cryptocurrency, such as USDa — the platform’s main product.
Second DeFiLlama data, USDa currently has around US$613 million in total value locked (TVL), consolidating itself as the second largest Collateralized Debt Position (CDP) stablecoin, behind only Sky's USDS. The assets are distributed across blockchains such as Ethereum, BNB Smart Chain, Bitcoin and Mantle, with emphasis on the first two, which concentrate the largest collateral.
Alex Odagiu, chief investment officer at YZi Labs, justified the investment based on Avalon’s technical strength and purpose. “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 a viable economic asset for global markets,” he said.
The company intends to use the funds to expand its operations, seek licensing in multiple jurisdictions, and strengthen its presence with institutional investors. The stated goal is to become the first fully regulated on-chain financial institution backed by Bitcoin.
Recently, Avalon also has entered into a collaboration with Bybit to integrate its CeDeFi protocol into the Bybit Earn service, allowing users to earn BTC yield with fixed-rate loans. The startup also participated in Season 8 of the Most Valuable Builder (MVB) program, promoted by BNB Chain in partnership with YZi Labs.
This investment follows YZi Labs’ recent support of Plume Network, which focuses on integrating real-world assets (RWAs) into the cryptocurrency ecosystem. YZi Labs currently manages over $10 billion in global assets and has invested in over 300 projects across 25 countries.
