Avalon Labs raised $10 million in Series A round

Avalon Labs, the issuer of the 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 Avalon Finance team is honored to announce the closing of our $10M Series A Round,” Forum posted on X.

Avalon Labs,

Omnichain liquidity for $BTCFithe Bitcoin Money – $USDathe largest credit market in the $BTC ecosystem

We are known for many things, but today is not about us. The @avalonfinance_ team is celebrating by announcing 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 financing round, which attracted participation from UXTO Management, Prestoby Framework Ventures and Kinetic Capital.

In the announcement, the Avalon Labs team said the project will use the funding to expand BTC's decentralized financial ecosystem.

In this case, Avalon's goal is to transform Bitcoin from a digital store of value into a powerful financial instrument.

The Avalon team wrote: “We are pioneering the future of financial solutions supported by Bitcoin, creating the first comprehensive ecosystem that unlocks the true potential of the world's leading cryptocurrency.”

Avalon's USDa stablecoin allows users to get into DeFi by staking on Bitcoin. The platform's lending rate is fixed at 8%, allowing USDa holders to access liquidity while holding their BTC position.

USDa, Avalon's principal debt position (CDP), is the second largest CDP according to data from DeFillama. Its TVL reached $700 million in early December and its competitors include MakerDAO's DAI and Liquity