Avalon Labs has successfully raised $10 million in a Series A funding round led by Framework Ventures, with participation from UXTO Management, Presto Labs, and Kenetic Capital. The capital will be utilized to expand Avalon’s Bitcoin DeFi ecosystem, which is gaining traction as Bitcoin increasingly integrates into the decentralized finance sector.

Avalon offers a stablecoin, USDa, enabling users to leverage their Bitcoin holdings by using them as collateral at a fixed rate of 8%. Additionally, the company provides yield-generating savings accounts and a Bitcoin-backed credit card, enhancing its DeFi offerings.

Recent data indicates Avalon Labs' total value locked (TVL) peaked at $1.82 billion, before adjusting to just under $1.5 billion. The USDa stablecoin's TVL also saw a peak at $530 million, later retracting to $461 million. Avalon Finance, the firm’s liquidity hub, remains a significant contributor to its TVL, accounting for $880 million.