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Avalon Labs eyes SEC approval for Bitcoin debt fund

Avalon Labs eyes SEC approval for Bitcoin debt fund

GrafaGrafa2025/02/13 13:00
By:Mahathir Bayena

Avalon Labs is exploring the launch of a Bitcoin-backed (CRYPTO:BTC) debt public fund compliant with SEC regulations, potentially pioneering retail access to Bitcoin-backed financial products.

The company is assessing the feasibility of using the SEC's Regulation A exemption, often called a "mini-IPO," to launch the fund.

Venus Li, co-founder of Avalon Labs, expressed confidence based on previous SEC approvals.

"While successful precedents in the crypto industry are limited, our analysis of previous SEC-approved cases suggests a viable path forward," said Li.

If successful, Avalon Labs' initiative could lower barriers for traditional investors and expand Bitcoin's utility.

The company is collaborating with U.S. law firms to navigate the regulatory landscape.

Avalon Labs aims to bridge traditional finance and crypto by developing regulated investment structures for BTC-backed lending products.

The company's existing offerings include the USDa stablecoin, BTC-backed loans, and a crypto-linked credit card.

In December, Avalon Labs raised $10 million in a Series A funding round to scale its DeFi ecosystem on Bitcoin.

As of February 12, Avalon Labs' total value locked (TVL) was $1.77 billion, and its stablecoin USDa had a market cap exceeding $271 million.

Avalon Labs' potential Bitcoin-backed debt fund application to the SEC could facilitate Bitcoin's integration into traditional finance.

At the time of reporting, the Bitcoin (BTC) price was $96,046.07.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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