YZi Labs, a venture capital and investment firm with over $10 billion in assets under management, has invested in Avalon Labs, a Bitcoin-focused on-chain capital markets platform.
YZi Labs announced the investment on May 26, 2025, prompting a sharp rally in Avalon’s native token, AVL, which traded around $0.27, just below its intraday high of over $0.29 following the news.
According to details shared by the Changpeng Zhao-led crypto VC firm, Avalon will use the new funding to strengthen its regulatory compliance efforts. This initiative supports the platform’s broader goal of expanding access to its Bitcoin (BTC) -backed products globally.
“At YZi Labs, we back projects with strong fundamentals that have the potential to revolutionize industries and create long-term impact,” said Alex Odaigu, investment director at YZi Labs. “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.”
Avalon’s quest for compliance comes as the crypto market witnesses rapid growth amid an influx of institutional investors, a chunk of the market Avalon eyes for its lending business.
Notably, the platform’s suite of real-world focused solutions includes the rapidly expanding BTC-backed lending, BTC-backed stablecoin and a yield-generating savings account.
The company also offers a credit card. Its user base boasts of over 300k active users and more than 20,000 BTC currently serviced.
Per DeFiLlama data, Avalon’s total value locked in the stablecoin USDa has surpassed $500 million to see it rank as the second largest collateralized debt position on DeFiLlama.
USDa allows Bitcoin holders the opportunity to unlock more value from the BTC they hold via liquidity and yield, all without having to face the pressure of potential selling.
