Avalon Labs, the issuer of the BTC-backed stablecoin USDa, has raised $10 million to develop its Bitcoin decentralized finance (DeFi) ecosystem.
The Collection A funding spherical was led by Framework Ventures and included contributions from UXTO Administration, Presto Labs and Kenetic Capital, in response to an announcement shared with CoinDesk on Monday.
Avalon goals to evolve BTC from a digital retailer of worth to a extra lively monetary instrument that may serve a spread of various functions.
Customers can unlock the worth saved of their BTC by collateralizing it for USDa at a set rate of interest of 8%. The token reached a complete worth of $700 million (TVL) earlier this month.
Along with its stablecoin, Avalon presents bitcoin-backed loans, yield-generating financial savings accounts and a bank card.
Stablecoins are a sort of digital token whose worth is pegged to that of one other forex, normally the US greenback. Their aim is to supply customers with the power to guard their funds from the volatility related to cryptocurrencies, with out having to take away them from the crypto ecosystem altogether.
Learn extra: Stablecoin market cap hits $200 billion milestone and will double by 2025 as adoption accelerates