Crypto/Finance/Investment
Avalon Labs Secures $10 Million in Series A Funding for Bitcoin-Backed Stablecoin Development
Avalon Labs has successfully raised $10 million to enhance its Bitcoin decentralized finance ecosystem, aiming to transform BTC into a versatile financial tool.
1 min read
What You Should Know:
- Avalon Labs, the entity behind the BTC-pegged stablecoin USDa, has successfully raised $10 million to advance its Bitcoin DeFi ecosystem.
- The recent Series A funding round was spearheaded by Framework Ventures, with contributions from UXTO Management, Presto Labs, and Kenetic Capital.
- Avalon seeks to transform BTC from merely a digital asset to an actively utilized financial instrument capable of serving varied functions.
- By collateralizing their BTC, users can access USDa at a predictable borrowing rate of 8%. Notably, the stablecoin reached $700 million in total value locked (TVL) earlier this month.
In addition to USDa, Avalon also provides Bitcoin collateralized lending, savings solutions that generate yield, and a linked credit card.
Stablecoins function as digital tokens that maintain a value tied to another currency, typically the U.S. dollar, allowing users to stabilize their investments from the volatility often associated with cryptocurrencies while remaining within the crypto space.
Read more: Stablecoin Market Cap Hits $200B Milestone, Could Double in 2025 as Adoption Accelerates
