The company is exploring the development of a Bitcoin-backed public debt fund under the US SEC framework.
Avalon Labs is researching the potential application of Regulation A, a USsecurities exemption, to allow retail investors to access Bitcoin-denominated financial products.
By unlocking Bitcoin DeFi yield through intuitive products, Avalon seeks to make Bitcoin accessible to everyone.
Avalon Labs, the popular BTCFi lending platform, is now making efforts to bring Bitcoin-backed financial products to crypto enthusiasts as well as mainstream users. In a bold move to expand the adoption of Bitcoin as a financial asset, Avalon is exploring the development of a Bitcoin-backed public debt fund under the US Securities and Exchange Commission () framework.
While foreseeing Bitcoin as a “Digital Gold”, the company noted that as more financial institutions integrate Bitcoin, along with the recent issuance of spot Bitcoin ETFs, this would be the right time to launch its product.
Furthermore, Avalon Labs envisions unlocking Bitcoin DeFi yield through a product designed to be intuitive for everyone, including those new to cryptocurrency. The platform also views this initiative as a major milestone in its efforts to create the leading on-chain capital market for Bitcoin.
As per Avalon Labs, this mission will help in breaking down barriers between traditional finance and crypto. Moreover, by exploring regulated investment structures, the platform seeks to bridge the two financial worlds while unlocking new opportunities for Bitcoin-backed products. In its message on the X platform, the lending platform :
“Bitcoin is one of the greatest financial innovations in history. At Avalon Labs, we are committed to making it accessible to everyone. Together, let’s shape the future — let’s make history.”
“Bitcoin is one of the greatest financial innovations in history. At Avalon Labs, we are committed to making it accessible to everyone. Together, let’s shape the future — let’s make history.”
Avalon Labs Explores Regulation A for Bitcoin-Backed Lending Products
In order to bring its Bitcoin-backed lending products to the market, Avalon Labs is exploring the potential application of Regulation A, a US securities exemption. As per the Securities Act of 1933, Regulation A will allow companies to raise capital from accredited as well as non-accredited investors via a public offering. This means bypassing the more extensive requirements of full SEC registration.
Often referred to as a “mini-IPO”, Regulation A is commonly used by fund managers, and private companies to access public markets while maintaining regulatory compliance.
This exemption provides a structured framework for issuing securities to retail investors. Besides, it also ensures transparency through SEC-reviewed offering circulars and periodic reporting. Avalon Labs is exploring how this regulatory structure could be applied to the crypto industry, potentially opening new avenues for retail investors to access Bitcoin-denominated financial products.
“We have spent years researching how Regulation A has been applied in traditional finance and whether it could be a viable path for crypto companies. While successful precedents in the crypto industry are limited, our analysis of previous SEC-approved cases suggests a viable path forward,” Venus Li, the co-founder of Avalon Labs said.