- YZi Labs invested in Avalon Labs to support Bitcoin’s transition into a dynamic and usable financial asset for everyday life.
- Avalon’s Bitcoin-based ecosystem includes lending, stablecoins, savings, and credit cards, serving over 300,000 users and 20,000 BTC.
Avalon Labs has now officially received funding from YZi Labs, a crypto investor that has recently become increasingly active in supporting projects with bold visions. This investment is not only to add to their portfolio, but also to strengthen Avalon’s mission to make Bitcoin more than just “digital gold.”
Avalon is building an on-chain capital market that is not only open and transparent, but also accessible to anyone, regardless of how well-versed they are in crypto.
— YZi Labs (@yzilabs) May 26, 2025
YZi Labs Backs Avalon’s Mission to Expand Bitcoin’s Utility
Avalon has developed a fairly complete Bitcoin-based ecosystem. Just imagine: from BTC-collateralized loans, USDa stablecoin, to interest-bearing savings and crypto-based credit cards. More than 20,000 Bitcoins are already managed in their system, with more than 300,000 active users taking part.
Interestingly, USDa — Avalon’s flagship stablecoin — has now recorded a TVL (total locked value) of more than US$500 million. On the DeFiLlama platform, USDa is currently listed as the second-largest CDP (Collateralized Debt Position). This means that Bitcoin users can access liquidity without having to sell their assets. It’s like having a house that can be schooled, but can still be lived in.
Serious Steps Towards Regulation and Global Scale
Furthermore, Avalon is not only satisfied with technical achievements. They have prepared big plans. The newly received funds will be used to accelerate the steps towards full legal compliance in various jurisdictions. The goal is clear: to become a truly regulated on-chain Bitcoin financial institution. They also plan to partner with top law firms to prepare for the launch of public funds and develop institutional loans.
In the middle of all this, YZi Labs seems to be increasingly selective but aggressive in choosing partners. Alex Odagiu, Investment Director of YZi Labs, stated:
“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.”
Just imagine if one day, people could earn interest on their savings just by holding their Bitcoin, or pay for groceries with a BTC-based credit card. It feels like reversing the old way of thinking about Bitcoin which has so far only been considered a dormant asset.
However, Avalon is not the first project to get attention from YZi Labs. On the other hand, last March CNF reported that they also poured investment into Plume Network, a modular Layer 2 blockchain focused on bringing real-world assets (RWA) into the crypto space. Before that, YZi Labs had even invested in Tensorplex Labs, a blockchain-based decentralized AI developer startup.
Judging from their investment patterns, YZi Labs does not seem to be choosing carelessly. They tend to support projects that bridge the crypto world with the real world.
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