Taiko signs partnership with Avalon Labs… builds RWA infrastructure for institutions

Taiko (TAIKO), an Ethereum (ETH)-based rollup network, announced on the 22nd that it has entered into a strategic partnership with Avalon Labs, a real-world asset (RWA) financial infrastructure project.

Through this collaboration, Avalon Labs plans to build stablecoin (a digital asset pegged to fiat currency) and real-asset-backed financial infrastructure for institutional investors on the Taiko network. Avalon Labs has recorded cumulative loan volume of US$3.1 billion (about 4 trillion won) to date and is an RWA project that has operated and managed more than 20,000 bitcoins (BTC).

Specifically, the infrastructure is expected to include audited lending smart contracts, integration with major oracle systems, a compliance framework that meets regulatory requirements, and revenue structures that link on-chain collateral to real-world yields. All transactions and operational records will be transparently disclosed on the Taiko network, and the design aims to strengthen network metrics while demonstrating institution-grade processing capabilities of decentralized infrastructure.

Avalon Labs chose Taiko because of Taiko's "Based Rollup" structure. Taiko's preconfirmation technology provides the fast transaction finality and stability demanded by institutional investors, and its decentralized structure is said to enable regulatory trust.

Taiko said, "We will demonstrate that an Ethereum-aligned infrastructure can realize decentralization, regulatory compliance, and high-performance infrastructure simultaneously," adding, "We expect this partnership to position Taiko as a key hub for institutional capital entering the digital asset market."

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