YZi Labs Invests in Avalon Labs to Advance Bitcoin Finance

YZi Labs, the venture arm previously known as Binance Labs, has announced a significant investment in Avalon Labs, an on-chain capital markets platform specializing in Bitcoin-backed financial products. This strategic move aims to advance the development of Bitcoin-powered finance, leveraging Avalon Labs' expertise in managing over 20,000 BTC and offering a range of financial products.

Avalon Labs operates a CeDeFi lending platform that includes Bitcoin-backed lending, stablecoins, yield-generating savings accounts, and a credit card. The platform's flagship product, USDa, is a Bitcoin-backed stablecoin that provides instant liquidity to Bitcoin holders without requiring them to sell their assets. This innovative approach has positioned Avalon Labs as a leader in the on-chain capital market for Bitcoin.

The investment by YZi Labs reflects the firm's confidence in projects that combine technical robustness with a long-term vision. Alex Odagiu, the investment director at YZi Labs, highlighted Avalon Labs' ability to leverage Bitcoin's security and liquidity to build a fully integrated financial ecosystem. This ecosystem bridges the gap between Bitcoin's potential and its real-world usability, transforming it into an active economic asset for global markets.

Avalon Labs plans to utilize the new funding to achieve regulatory compliance across multiple jurisdictions and to expand its institutional lending business. The company aims to become the first fully regulated on-chain Bitcoin financial institution, setting a new standard for the industry.

The strategic investment by YZi Labs in Avalon Labs underscores the growing interest in Bitcoin-powered financial services and the potential for on-chain capital markets to revolutionize traditional finance. By backing Avalon Labs, YZi Labs is positioning itself at the forefront of this emerging sector, supporting innovation and regulatory compliance in the Bitcoin ecosystem.