Avalon Labs, the issuer of Bitcoin (BTC)-backed stablecoin USDa, has secured $10 million in a Series A financing round that attracted several venture capital firms.
“We are known for many things but today is not about us. The team from Avalon Finance is honored to announce the closing of our 10M Series A Round,” the platform posted on X.
Avalon Labs,
the Omnichain Liquidity for $BTCFi
the Bitcoin Money – $USDa
the largest lending market in the $BTC ecosystemWe are known for many things but today is not about us. The team from @avalonfinance_ is honored to announce the closing of our 10M Series A Round, led by… pic.twitter.com/22TPMDE6iu
— Avalon Labs 🎩🔮 (@avalonfinance_) December 23, 2024
Venture capital firm Framework Ventures led the funding round, which attracted the participation of UXTO Management, Prestoby Framework Ventures and Kenetic Capital.
In an announcement, the Avalon Labs team said the project will use the funding support to expand its BTC decentralized finance ecosystem.
In this case, Avalon’s aim is to evolve Bitcoin from being just a digital store of value to a robust financial instrument.
“We are pioneering the future of Bitcoin-backed financial solutions, creating the first comprehensive ecosystem that unlocks the true potential of the world’s leading cryptocurrency” the Avalon team wrote.
Avalon’s USDa stablecoin allows users to tap into DeFi on Bitcoin by collateralizing it. The platform’s borrowing rate is fixed at 8%, which allows USDa holders to access liquidity while keeping their BTC positions.
USDa, Avalon’s flagship collateralized debt position (CDP), ranks as the second-largest CDP per data from DeFiLlama. Its TVL hit $700 million in early December and its competitors include MakerDAO’s DAI and Liquity
