Avalon Labs Launches Institutional Bitcoin Lending Product

Avalon Labs has officially launched an institutional-grade Bitcoin overcollateralized lending product, marking a significant development in the cryptocurrency lending market. This new offering is designed to provide secure, transparent, and efficient on-chain lending services specifically tailored for institutional Bitcoin holders.

The product utilizes an overcollateralization mechanism, which means that the value of the collateral (in this case, Bitcoin) exceeds the value of the loan. This approach ensures that lenders are protected against potential defaults. Institutional users can access stable lending interest rates and have the flexibility to choose open-ended loan terms, making it an attractive option for those looking to manage their Bitcoin holdings more effectively.

Avalon Labs has already partnered with several well-known industry institutions to facilitate access to this new lending product. The first batch of partners is set to launch soon, and the platform plans to further expand by offering customized lending models. These models will cater to the diverse risk management and asset allocation needs of institutions of varying sizes, ensuring that the product remains versatile and adaptable to different market conditions.

As the world's largest Bitcoin-backed stablecoin issuance platform, Avalon Labs' ecosystem encompasses a wide range of financial products, including stablecoins, lending protocols, credit, and payment solutions. The launch of this institutional lending product is a pivotal step in Avalon Labs' mission to establish a comprehensive Bitcoin on-chain financial hub. This hub aims to provide a seamless and integrated financial ecosystem for institutional investors, enhancing liquidity and efficiency in the Bitcoin market.