Avalon Labs is exploring the launch of a Bitcoin-backed public debt fund under the SEC’s Regulation A framework, aiming to make Bitcoin-backed financial products accessible to a wider audience.

By leveraging Regulation A, Avalon Labs aims to simplify the investment process while ensuring compliance and transparency, similar to methods used by real estate investment trusts (REITs).

This initiative is viewed as a crucial step in bridging traditional finance and cryptocurrency, potentially lowering entry barriers for traditional investors and enhancing Bitcoin's utility.

To navigate regulatory requirements, Avalon Labs collaborates with leading U.S. law firms to prepare the necessary documentation for the fund.

Co-founder Venus Li, who has prior experience in securing SEC approval for a public debt fund, expressed optimism about the regulatory process for this new initiative.

The current integration of Bitcoin by financial institutions and the recent issuance of spot Bitcoin ETFs are seen as favorable conditions for launching their products.

Avalon Labs operates as an on-chain financial center for Bitcoin, offering products such as Bitcoin-backed lending, a stablecoin, yield-generating accounts, and a credit card.

This initiative follows the launch of USDa, the world's first Bitcoin-backed stablecoin, as Avalon Labs aims to expand its financial product offerings.

The USDa stablecoin provides liquidity solutions for Bitcoin holders, allowing them to borrow against their assets at a fixed interest rate of 8%.

As of early February 2025, Avalon Labs’ total value locked (TVL) in its ecosystem was $1.77 billion, reflecting a shift in market dynamics.

On February 12, 2025, Avalon Labs’ native token, AVL, was listed on Bybit's Spot trading platform, enhancing liquidity and community governance.

In December 2024, Avalon Labs raised $10 million in a Series A funding round to scale its Bitcoin-based decentralized finance ecosystem and launch new products.