Avalon Labs Secures Seed Funding from YZi Labs

Avalon Labs has secured a strategic investment from YZi Labs, a venture capital firm led by Changpeng Zhao, on May 26, 2025. This funding aims to enhance Avalon’s Bitcoin-focused on-chain capital markets platform.

The funding signals growing confidence in Avalon’s vision to integrate Bitcoin into mainstream financial markets. The market reacted positively with a substantial increase in AVL token price following the announcement.

Strategic Seed Round Funding

Avalon Labs completed a strategic seed round funding with YZi Labs, led by Changpeng Zhao, as the primary investor with $10 billion in assets. This move marks a remarkable milestone for Avalon, focusing on bridging Bitcoin to real-world applications. Venus Li, co-founder of Avalon Labs, expressed gratitude for YZi Labs’ support, emphasizing their commitment to bringing fresh capital and new participants to the Bitcoin ecosystem. She stated:

“We’re grateful for YZi Labs’ support as we continue building the premier financial hub for Bitcoin. Our industry thrives on both user growth and capital inflow, and we constantly challenge ourselves to contribute beyond just capturing existing market share. As pioneers in Bitcoin finance, we aim to introduce fresh capital and new participants.”

Immediately after the investment announcement, the AVL token price surged 15-30%, highlighting the market’s positive reception. YZi Labs, known for backing projects with strong fundamentals, recognized the potential of Avalon in transforming Bitcoin into an integrated financial ecosystem. YZi Labs has backed only select projects, underlining the strategic importance of this investment.

Mission to Become a Regulated Institution

Avalon Labs’ mission to become the first fully regulated on-chain Bitcoin financial institution underscores the importance of this investment. The funding will accelerate Avalon Labs’ focus on achieving regulatory compliance, securing licenses, and preparing for a public fund launch. As part of the commitment, Venus Li highlighted the opportunity to unlock yield opportunities for non-crypto users.

Conclusion

In summary, this strategic funding marks a pivotal stage in Avalon Labs’ journey, pushing Bitcoin’s real-world integration. YZi Labs’ involvement signifies the growing institutional interest in Bitcoin financial infrastructure, promising continued developments in the crypto finance landscape.