YZi Labs Invests in Avalon Labs to Unlock the Next Evolution of Bitcoin-Powered Finance

Main Takeaways:

• Avalon Labs is an on-chain capital market for Bitcoin, building a scalable, transparent, and accessible financial network that unlocks Bitcoin’s full economic potential.
• YZi Labs supports projects with the potential to transform industries and drive lasting impact like Avalon Labs, which is unlocking Bitcoin’s vast potential for real-world usability.

YZi Labs has invested in Avalon Labs (Avalon), an on-chain capital market for Bitcoin, building a scalable, transparent, and accessible financial network that unlocks Bitcoin’s full economic potential. As the world’s largest issuer of Bitcoin-backed stablecoins, Avalon is transforming Bitcoin from a passive store of value into a dynamic financial asset, driving real-world adoption and utility across global markets. 

Avalon was part of Season 8 Most Valuable Builder (MVB), the incubation program co-led by BNB Chain, YZi Labs and CoinMarketCap.

Today, the Avalon ecosystem encompasses Bitcoin-backed lending, a Bitcoin-backed stablecoin, yield-generating savings accounts, and a credit card. With more than 20,000 Bitcoins currently serviced and over 300,000 active users, Avalon is quickly becoming one of the most prominent projects in the Bitcoin DeFi ecosystem.

With over $500 million in total value locked (TVL), Avalon’s flagship product, the Bitcoin stablecoin USDa, now ranks as the second-largest CDP (Collateralized Debt Position) on DeFiLlama. USDa is designed to offer Bitcoin holders seamless liquidity access, stability, and yield, enabling users to unlock the value of their Bitcoin without the need to sell.

With the newly raised capital, Avalon is gearing up for mass adoption. Avalon will begin its journey toward full regulatory compliance across multiple jurisdictions, securing necessary licenses and collaborating with top-tier law firms to prepare for the launch of a public fund. At the same time, Avalon will accelerate the growth of its institutional lending business, with the goal of becoming the first fully regulated on-chain Bitcoin financial institution.

“At YZi Labs, we back projects with strong fundamentals that have the potential to revolutionize industries and create long-term impact. 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," said Alex Odagiu, Investment Director at YZi Labs.

“We’re grateful for YZi Labs’ support as we continue building the premier financial hub for Bitcoin,” said Venus Li, Co-Founder of Avalon Labs. “Our industry thrives on both user growth and capital inflow, and we constantly challenge ourselves to contribute beyond just capturing existing market share. As pioneers in Bitcoin finance, we aim to introduce fresh capital and new participants. Bitcoin, widely recognized as ‘digital gold,’ holds unique global acceptance. By bringing Bitcoin-backed products into everyday life, we will unlock yield opportunities for non-crypto users, seamlessly bridging Bitcoin with the real world and driving mass adoption.”

About YZi Labs

YZi Labs manages over $10 billion assets globally. Our investment philosophy emphasizes impact first—we believe that meaningful returns will naturally follow. We invest in ventures at every stage, prioritizing those with solid fundamentals in Web3, AI, and biotech.

YZi Labs’ portfolio covers over 300 projects from over 25 countries across six continents. More than 65 of YZi Labs’ portfolio companies have gone through our incubation programs. For more information, follow YZi Labs on X.

About Avalon Labs

Avalon Labs is building the premier on-chain financial center for Bitcoin, offering a seamless ecosystem that includes BTC-backed lending, a Bitcoin-backed stablecoin, yield-generating accounts, and a credit card. We’re committed to creating a scalable, transparent, and accessible financial network that transforms Bitcoin into an active economic asset across global markets.

Disclaimer: The information provided in this article is intended for informational purposes only and does not constitute investment advice, endorsement, analysis, or recommendations with respect to any financial instruments, investments, or issuers. This article may contain forward-looking statements which are by nature subject to risks and uncertainties. Investment in cryptocurrency and DeFi projects involves substantial risk, including the risk of complete loss. This article does not take into account the investment objectives, financial situation, or specific needs of any particular person and each individual is urged to consult their legal and financial advisors before making any investment decisions.