As demand for advanced AI hardware grows, crypto companies are seeking new opportunities in this space. YZi Labs, owned by Binance founders, has announced its investment in USD.AI.
YZi Labs Investment in USD.AI
On August 26, YZi Labs announced its investment in USD.AI, which is developing a stablecoin backed by loans on AI hardware. Founders of YZi Labs, Changpeng Zhao and Yi He, see potential in the fast-growing AI sector.
Stablecoin Backed by AI Hardware Loans
The USD.AI project allows AI hardware operators to pledge their GPUs for financing, enabling the issuance of stablecoins that are backed 1:1 by this hardware and yield income based on these loans.
Potential Risks and Achievements of USD.AI
So far, USD.AI has reached $62 million in total value locked, provided by loans from AI hardware firms. However, loans backed by GPUs come with risks, as their value can fluctuate based on market demand and technological advances. 'We back builders who bridge Web3 with real-world demand,' said Dana Hou, Investment Partner of YZi Labs.
The investment of YZi Labs in USD.AI highlights the growing interest in integrating financial technology with AI hardware, which could open new opportunities for companies in this sector.
