Investment by YZi Labs propels Avalon's price surge by 15%
Venture capital firm YZi Labs, with over $10 billion in assets under management, has invested in Avalon Labs, a Bitcoin-centric on-chain capital markets platform. This investment, announced on May 26, 2025, triggered a surge in Avalon's native token AVL, with the token trading around $0.27, just below its day's high of over $0.29 following the announcement.
Avalon will use the new funds to bolster its regulatory compliance efforts, an initiative aimed at expanding global access to its Bitcoin-backed financial products. In a statement, Alex Odaigu, investment director at YZi Labs, emphasized the firm's belief in Avalon's potential to revolutionize industries and create long-lasting impact. He praised Avalon for leveraging Bitcoin's security and liquidity to construct a fully integrated financial ecosystem.
The move comes as the cryptocurrency market experiences accelerated growth, with a surge in institutional investors entering the market. Avalon's investment in regulatory compliance is a strategic move to cater to this new sector, targeting institutional clients for its lending business.
Avalon's portfolio includes rapidly expanding BTC-backed lending, a BTC-backed stablecoin, and a yield-generating savings account. The company also provides a credit card. With over 300,000 active users and more than 20,000 BTC currently serviced, Avalon's user base is expanding. Per DeFiLlama data, Avalon's total value locked in the stablecoin USDa has surpassed $500 million, making it the second-largest collateralized debt position on the platform.
USDa offers Bitcoin holders the opportunity to unlock additional value from their BTC without the pressure of selling. This diversification of Bitcoin use breaks down barriers between global liquidity and everyday financial needs. As Avalon continues to work towards securing necessary regulatory licenses in various regions and collaborating with top-tier law firms, the company plans to launch a public fund, further democratizing access to Bitcoin-backed financial products and attracting a broader base of investors.
- Alex Odaigu, investment director at YZi Labs, acknowledged Avalon's potential to revolutionize industries and create long-lasting impact by leveraging Bitcoin's security and liquidity to construct a fully integrated financial ecosystem.
- Avalon's investment in regulatory compliance is a strategic move to cater to institutional clients for its lending business, as the cryptocurrency market experiences accelerated growth with a surge in institutional investors entering the market.
- The move towards securing necessary regulatory licenses in various regions and collaborating with top-tier law firms will allow Avalon to launch a public fund, further democratizing access to Bitcoin-backed financial products and attracting a broader base of investors.
- Avalon's portfolio includes rapidly expanding BTC-backed lending, a BTC-backed stablecoin named USDa, a yield-generating savings account, and a credit card, servicing more than 300,000 active users and over 20,000 BTC.
- Per DeFiLlama data, Avalon's total value locked in the stablecoin USDa has surpassed $500 million, making it the second-largest collateralized debt position on the platform, offering Bitcoin holders the opportunity to unlock additional value from their BTC without the pressure of selling, breaking down barriers between global liquidity and everyday financial needs.
