YZi Labs Invests in Bitcoin-Based Avalon Labs for Compliance Expansion – Coincu

YZi Labs, an investment arm of Binance, announced its support for Avalon Labs on May 26, as reported by PANews. Avalon Laboratories is developing a Bitcoin-native on-chain capital market.

The collaboration helps bridge Bitcoin’s liquidity with real-world applications. Avalon seeks compliance and expansion into institutional markets, aiming to be a regulated player in Bitcoin finance.

Avalon Labs Secures Investment from YZi with 20,000 BTC Assets

YZi Labs announced its investment in Avalon Labs, a company focused on developing a Bitcoin-native on-chain capital market. Avalon, managing over 300,000 active users, plans to become a regulated Bitcoin financial institution. YZi Labs sees Avalon as a transformative project, strengthening its efforts in financial compliance.

Avalon Labs aims to deliver Bitcoin-backed financial services in a regulated environment. With over 20,000 BTC in assets, Avalon prioritizes institutional compliance. The collaboration seeks to enhance BTC usability in financial markets through on-chain expansion.

Alex Odagiu, Director, YZi Labs, stated, “At YZi Labs, we support projects with strong fundamentals that can revolutionize industries and create long-term impact. Avalon exemplifies this by building a fully integrated financial ecosystem using the security and liquidity of Bitcoin. It bridges the gap between Bitcoin’s immense potential and its real-world usability, transforming it into an active economic asset for global markets.”

Alex Odagiu of YZi Labs stated, “Avalon builds a financial ecosystem using Bitcoin’s liquidity.” Venus Li, Co-Founder of Avalon, expressed gratitude for YZi’s support in enhancing Bitcoin’s financial role, highlighting Avalon’s ambition for a regulated status.

Industry Reaction and Market Dynamics Fuel BTC’s Climb

Did you know? Avalon’s USDa stablecoin is now the second-largest CDP project according to DeFiLlama, demonstrating strong adoption in the rapidly growing BTC-backed DeFi space, similar to DAI’s effect in Ethereum’s ecosystem.

According to CoinMarketCap, Bitcoin is trading at $109,641.14 with a market cap of approximately $2.18 trillion. Recent data shows a 5.76% increase over the past week, emphasizing its influence with 63.37% market dominance. Over the past 60 days, prices have surged 26.85%.

The Coincu research team highlights that the move towards Bitcoin compliance aligns with industry trends, indicating a potential for increased regulatory interaction in DeFi. Technological integration aims to enhance financial stability and user trust within crypto spaces, supporting Bitcoin’s role as a dynamic economic asset.