Avalon Labs, a Bitcoin-based DeFi protocol, has announced plans to launch a Bitcoin-backed, debt-focused public fund compliant with the US Securities and Exchange Commission (SEC). This is part of the firm's strategy to expand its products in the US.
Avalon Labs' Fund Creation Plans
Avalon Labs revealed its intentions to explore the creation of Bitcoin-backed financial products. The company is currently researching the application of the Regulation A Exemption for launching the fund.
The Importance of Regulation A Exemption
Regulation A enables companies to raise capital through a public offering without undergoing full SEC registration. Avalon Labs is exploring whether this exemption can be applied to issue Bitcoin-backed lending products. Co-founder Venus Li expressed confidence in the SEC's objective assessment of applications.
Avalon's Latest Initiatives
Avalon Labs is also taking steps to increase the adoption of Bitcoin-backed products, having introduced the USDa stablecoin and announcing the listing of its AVL token on the ByBit exchange. These steps are in line with the company's strategy to develop a Bitcoin-based DeFi ecosystem.
Avalon Labs' plans for a Bitcoin-backed fund and recent DeFi initiatives show their commitment to integrating traditional finance with the crypto industry. With new strategies, Avalon aims to garner more attention in the financial sector.
