Avalon Labs, the issuer of the BTC-backed stablecoin USDa, has raised $10 million to develop its Bitcoin decentralized finance (DeFi) ecosystem.
The Series A funding spherical was led by Framework Ventures and included contributions from UXTO Administration, Presto Labs and Kenetic Capital, in line with an announcement shared with CoinDesk on Monday.
Avalon goals to evolve BTC from a digital retailer of worth to a extra energetic monetary instrument that may serve a variety of various functions.
Customers can unlock the worth saved of their BTC by collateralizing it for USDa it at a set borrowing fee of 8%. The token reached $700 million in whole worth locked (TVL) earlier this month.
Together with its stablecoin, Avalon presents bitcoin-backed lending, yield producing financial savings accounts and a bank card.
Stablecoins are a kind of digital token whose worth is pegged to that of one other forex, usually the U.S. greenback. Their objective is to offer customers the choice of defending their funds from volatility related to cryptocurrencies with out having to take away them from the crypto ecosystem altogether.
Learn Extra: Stablecoin Market Cap Hits $200B Milestone, May Double in 2025 as Adoption Accelerates
