Summary
- Avalon Labs announced that it has secured a Series A investment of 14.5 billion won.
- This investment move aims to expand the Bitcoin-based decentralized finance (DeFi) ecosystem.
- Avalon Labs stated that it issues USDa with Bitcoin as collateral and offers a fixed loan interest rate of 8%.
Avalon Labs, the issuer of the Bitcoin (BTC)-based stablecoin USDa, has secured a Series A investment of $10 million (approximately 14.5 billion won).
According to CoinDesk on the 23rd (local time), Avalon Labs recently secured a Series A investment of $10 million.
This Series A investment was led by Framework Ventures. Participants in the investment included UXTO Management, Presto Labs, and Kenetic Capital.
Avalon Labs secured the Series A investment to expand the Bitcoin-based decentralized finance (DeFi) ecosystem. Avalon Labs aims to develop Bitcoin beyond a simple virtual asset into a financial instrument that can be utilized for various purposes.
In the case of Avalon Labs' USDa, users can issue it with Bitcoin set as collateral at a fixed loan interest rate of 8%. As of early this month, the total value locked (TVL) is $700 million (approximately 1 trillion 170 billion won). Avalon Labs also offers Bitcoin-based loans and credit card services in addition to stablecoins.
Meanwhile, stablecoins are a type of digital token that links value with other currencies such as the dollar.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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