YZi Labs invests in Avalon, sending AVL token up 15% amid growing interest in Web3 infrastructure and early-stage blockchain development
Avalon Labs, an on-chain capital markets platform that is Bitcoin-focused, has received an investment from YZi Labs, a venture capital and investment firm with over $10 billion in assets under management.
Following the announcement of the investment by YZi Labs on May 26, 2025, Avalon’s native token, AVL, experienced a significant increase in value, trading at approximately $0.27, just below its intraday peak of over $0.29.
The new funding will be utilized by Avalon to enhance its regulatory compliance initiatives, as per the information provided by the crypto VC firm led by Changpeng Zhao. This initiative is consistent with the platform’s overarching objective of enhancing global accessibility to its Bitcoin-backed products.
“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 pursuit of compliance coincides with the crypto market’s rapid expansion in response to an influx of institutional investors, a portion of the market that Avalon intends to target for its lending business.
Notably, the platform’s suite of real-world solutions includes a yield-generating savings account, BTC-backed stablecoin, and rapidly expanding BTC-backed lending.
Additionally, the organization provides a credit card. It presently services over 20,000 BTC and has a user base of over 300,000 active users.
Avalon’s total value in the stablecoin USDa has surpassed $500 million, resulting in it being the second largest collateralized debt position on DeFiLlama, according to DeFiLlama data.
USDa allows Bitcoin holders to realize additional value from their BTC holdings through liquidity and yield, all without the stress of potential selling.