YZi Labs has revealed it has invested in Avalon Labs, sparking a 30% surge.
Avalon has minted $613M in BTC-backed USDa stablecoins.
Avalon targets to offer institutional-grade Bitcoin DeFi services.
AVL token price is soaring after YZi Labs (formerly known as Binance Labs) revealed it has made a strategic investment in Avalon Labs, a rising star in the Bitcoin DeFi sector.
The investment announcement ignited a vertical rally in the AVL token, which surged by over 30% to reach a one-month high, pushing prices briefly past the $0.31 mark before stabilising near $0.27 at press time.
Notably, this marks YZi Labs’ first investment in nearly a month, reinforcing the exclusivity and high standards of its portfolio selection, which typically includes only a handful of projects each quarter.
Although the investment sum remains undisclosed, the market reaction reflects growing investor confidence in Avalon Labs’ ambitious roadmap and its pivotal role in Bitcoin-backed decentralised finance.
Avalon Labs’ institutional-grade DeFi protocol vision
Transitioning into its next phase, Avalon Labs aims to establish itself as the leading institutional-grade DeFi protocol by using Bitcoin as collateral for lending, stablecoin issuance, and other financial services.
In fact, the platform has already minted over $613 million in its USDa stablecoin, positioning it as the second-largest issuer of Bitcoin-backed stablecoins behind only Sky Protocol.
As part of its growing ecosystem, Avalon also offers BTC-collateralised loans, a yield-bearing savings account, and even a credit card, all designed to increase Bitcoin’s real-world financial utility.
Backed by 20,000 non-custodial BTC and servicing over 300,000 daily active users, Avalon is carving a space in the emerging Bitcoin DeFi landscape, which now holds a total value locked of $6.69 billion.
Although Avalon’s current TVL has dipped to $1.22 billion from earlier highs, the investment by Yzi Labs remains substantial, particularly considering the end of its airdrop program and the volatile state of the broader market.
Plan to enhance regulatory compliance
Avalon plans to use the new capital to enhance its regulatory standing across jurisdictions, which may open the door to traditional finance partnerships and large-scale institutional lending.
The renewed focus on compliance and institutional access aligns with YZi Labs’ investment thesis, which prioritises projects that combine strong fundamentals with global growth potential.
Moreover, the connection with YZi Labs could signal future inclusion in the Binance ecosystem, especially if AVL demonstrates sustainable growth and increased user adoption.
Despite being an Ethereum-based token, AVL’s rising prominence could earn it further exchange listings and increased liquidity, particularly as Bitcoin DeFi garners wider attention.
Avalon’s success story also includes being named the Season 8 winner of the Most Valuable Builder event, a key incubator program led by BNB Smart Chain, YZi Labs, and CoinMarketCap.
Given the increasing demand for BTC-backed products, Avalon appears well-positioned to benefit from the next wave of institutional and retail adoption in decentralised finance.
As momentum builds, AVL remains one of the most closely watched mid-cap tokens in the space, especially as investors await further token unlocks and platform updates.
Ultimately, the YZi Labs investment has not only boosted AVL’s price but also solidified Avalon’s role as a frontrunner in transforming Bitcoin into a capital-efficient asset class.