Avalon Labs Raises $10M Series A to Grow Bitcoin-Backed Stablecoin
The Series A funding round was led by Framework Ventures and included contributions from UXTO Management, Presto Labs and Kenetic Capital
1. **Summary:**
Avalon Labs, the company behind the BTC-backed stablecoin USDa, has secured a $10 million Series A funding round led by Framework Ventures. Other contributors include UXTO Management, Presto Labs, and Kenetic Capital. The funding aims to expand Avalon’s Bitcoin DeFi ecosystem, allowing users to leverage their BTC as collateral for USDa at an 8% borrowing rate. Avalon offers various services, including bitcoin-backed lending, yield-generating savings accounts, and a credit card.
2. **Key Insights:**
– Avalon Labs raised $10 million in a Series A funding round led by Framework Ventures.
– Contributors to the funding round include UXTO Management, Presto Labs, and Kenetic Capital.
– Avalon’s goal is to transform BTC into an active financial instrument within their DeFi ecosystem.
– Users can collateralize their BTC for USDa at an 8% borrowing rate, unlocking the stored value.
– USDa stablecoin has reached $700 million in total value locked (TVL).
– Avalon provides various financial services, such as bitcoin-backed lending, savings accounts, and a credit card.
– Stablecoins like USDa offer users a way to protect their funds from cryptocurrency volatility while staying within the crypto ecosystem.
– The stablecoin market cap has hit a $200 billion milestone, and adoption is expected to double by 2025 as it accelerates.
