TL;DR

Avalon Labs is considering launching a Bitcoin-backed public debt fund in the US under the SEC’s Regulation A exemption.
The company already offers products such as the USDa stablecoin, BTC-backed loans, and a crypto-linked credit card.
In December, it raised $10 million in funding to expand its decentralized finance ecosystem on Bitcoin.

Avalon Labs is evaluating the creation of a Bitcoin-backed public debt fund in the United States. This initiative aims to expand retail investors’ access to cryptocurrency-based financial products through a regulated model.

The company is exploring the possibility of utilizing the US Securities and Exchange Commission’s (SEC) Regulation A exemption, which would allow it to raise capital without the full registration requirements of a traditional public offering. While no official timeline has been set, the company is currently analyzing the regulatory landscape and consulting with experts to determine the project’s feasibility.

This initiative is part of Avalon Labs’ broader expansion strategy in the Bitcoin lending market. By developing regulated products, it seeks to provide tools that enable investors to access BTC-backed financial instruments within a structured and transparent framework. The company aims to transform Bitcoin into a dynamic financial asset beyond its traditional role as a store of value.

Avalon Labs: Bitcoin-Based Product Suite

Avalon Labs already offers a variety of Bitcoin-based solutions. Its stablecoin USDa, with a market capitalization exceeding $271 million, allows users to unlock liquidity from their BTC holdings with an 8% collateralization rate. The company also provides BTC-backed loan services, yield-generating accounts, and a crypto-linked credit card.

In December, the company secured $10 million in a Series A funding round led by Framework Ventures, with participation from UXTO Management, Presto Labs, and Kenetic Capital. These funds will be used to expand its decentralized finance ecosystem on Bitcoin, driving new solutions and enhancing existing ones.

Avalon Labs’ growth is reflected in its financial metrics. According to DeFiLlama data, its total value locked (TVL) peaked at $2.05 billion on January 31 before dropping to $1.77 billion on February 12

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Filed under: News - @ February 12, 2025 3:30 pm