USD.AI Bridges AI and DeFi with $500M Expansion to Fuel Innovation

USD.AI has announced a significant expansion of its autoUSDai deposit cap, increasing it by $100 million to reach $500 million, up from $160 million just weeks prior USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2]. This move, part of the protocol's broader strategy to scale AI-driven infrastructure financing, underscores growing demand for yield-bearing stablecoins collateralized by GPU hardware and computational assets. The platform, which launched on Arbitrum in August 2025, has already attracted $50 million in deposits during its private beta phase USD.AI Launches on Arbitrum, Rolls Out AutoVaults^[4]. The increased cap includes a $250 million allocation to the Plasma Foundation, a partner focused on stablecoin settlement and cross-border payments USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2].

USD.AI's model leverages tokenized GPU collateral from AI startups to generate yield for depositors, offering a synthetic stablecoin (USDai) and a yield-bearing variant (sUSDai). Current annual percentage rates (APRs) stand at 9.31% for existing deposits, with an expected APR of 13.53% post-expansion USD AI^[1]. The protocol's total value locked (TVL) has reached $500.3 million, supported by 19,052 users USD AI^[1]. By converting idle AI infrastructure into on-chain collateral, USD.AI aims to democratize access to capital for smaller AI firms, enabling faster, non-dilutive loans while providing depositors with T-Bill-like returns USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2].

The cap increase coincides with USD.AI's public launch of AutoVaults, a suite of DeFi strategies managed by partners like Pendle, Euler, and K3 Capital USD.AI Launches on Arbitrum, Rolls Out AutoVaults^[4]. These vaults aim to boost capital efficiency by offering automated yield strategies and derivatives capabilities. The integration with Euler, a next-gen liquidity engine, allows users to earn yield while supporting deep liquidity for stablecoin pairs like USDai and sUSDai USD.AI Launches on Arbitrum, Rolls Out AutoVaults^[4]. The protocol's focus on institutional-grade risk management and modular redemption systems differentiates it from traditional stablecoins and other real-world asset (RWA) platforms USD.AI | Farm stablecoins | Airdrop | How to boost points^[5].

Analysts highlight the strategic timing of the cap raise, which precedes a token generation event (TGE) in Q1 2026 with a $300 million fully diluted valuation (FDV). The TGE will allocate 7% of the token supply for the initial coin offering (ICO) and 3% for an airdrop to stakers USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2]. The rapid scaling-from $160 million to $500 million-reflects strong investor confidence, evidenced by USD.AI's $13 million Series A funding led by Framework Ventures, Dragonfly, and the Arbitrum Foundation USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2]. However, challenges remain, including potential risks from GPU valuation declines and regulatory scrutiny as stablecoin oversight tightens in key jurisdictions USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2].

The expansion positions USD.AI to capitalize on the AI-DeFi convergence, a market projected to grow alongside the broader stablecoin sector, which is expected to hit $1 trillion by 2026 USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2]. By bridging AI infrastructure with DeFi, USD.AI aims to lower barriers for startups while fostering innovation in compute-backed finance. The partnership with Plasma Foundation further signals ambitions in cross-border payments, potentially challenging traditional systems like SWIFT USD.AI’s $500M Deposit Cap Raise Is A Bold Step Toward Scaling AI-DeFi Integration^[2]. As the protocol moves toward its TGE, the integration of advanced DeFi tools and institutional-grade collateral management could solidify its role in reshaping AI infrastructure financing.