YZi Labs, the rebranded investment arm of Binance, announced strategic investments in the USD.AI stablecoin protocol aimed at funding AI infrastructure.
YZi Labs Investment in USD.AI
YZi Labs, the investment arm of the cryptocurrency exchange Binance, has announced its strategic investment in USD.AI, a stablecoin protocol. The specific investment amount was not disclosed, but it was emphasized that this move will support USD.AI's goal of developing a synthetic stablecoin model that provides returns scaling alongside global computing demand.
USD.AI Financing Model
USD.AI offers a physical asset-based financing model, where AI hardware and network nodes serve as the core assets. Notably, the protocol provides faster liquidity compared to traditional lending funds, with each loan collateralized 1:1 by AI hardware. This reduces the loan closing time from 60-90 days to just 7 days. To date, the protocol has achieved over $62 million in total value locked (TVL) and developed its AutoVaults product in partnership with key players such as K3 Capital, Concrete, Euler, and Pendle.
YZi Labs Representatives Comments
Dana Hou, Investment Partner at YZi Labs, commented: "USD.AI integrates AI hardware financing into the DeFi ecosystem, aligning incentives for lenders, borrowers, and infrastructure providers alike. We were impressed by the founders' dedication to building a commercially viable product despite market cycles."
YZi Labs' investment in USD.AI highlights the growing interest in integrating AI into the DeFi sector, creating new opportunities for funding and technological development.
