Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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Last updated: 

May 25, 2025

In a bold bet on Bitcoin’s DeFi future, Changpeng Zhao (CZ)–backed YZi Labs—formerly Binance Labs—has made an undisclosed investment in Avalon Labs, a fast-rising platform building on-chain capital markets powered by BTC.

In an X post on May 26, the firm said the project is building financial infrastructure around BTC-collateralized lending, stablecoin USDa, savings products, and credit services, showing there is interest in Bitcoin-powered DeFi.

USDa: Powering a Bitcoin-Backed Financial Ecosystem

At the core of Avalon’s ecosystem is USDa, a Bitcoin-backed stablecoin that allows users to borrow, earn yield, and transact without selling their BTC.

The firm has over $500 million in total value locked (TVL). USDa is the second-largest collateralized debt position (CDP) project tracked by DeFiLlama.

The platform goes beyond stablecoins to include BTC-backed lending, yield-bearing savings accounts, and a Bitcoin-collateralized credit card, managing more than 20,000 BTC.

Scaling Toward Regulation and Institutional Growth

Avalon’s journey began in Season 8 of the Most Valuable Builder (MVB) accelerator—run in partnership with BNB Chain, CoinMarketCap, and YZi Labs.

In a blog post, the firm explains that with this new capital injection, Avalon is preparing to scale globally, targeting regulatory licenses across key markets and working with elite law firms to launch a fully regulated public fund.

At the same time, the company said it is ramping up its institutional lending business, seeking to become the world’s first fully regulated on-chain Bitcoin financial institution.

“Avalon leverages Bitcoin’s security and liquidity to create a full-stack financial ecosystem,” said Alex Odagiu, Investment Director at YZi Labs. “It bridges the gap between Bitcoin’s vast potential and real-world usability.”

“We’re building the premier financial hub for Bitcoin,” added Venus Li, Co-Founder of Avalon Labs. “With YZi Labs’ support, we’ll bring Bitcoin-backed products to everyday users and unlock yield for a global audience.”

Binance Labs Rebrands to YZi Labs With CZ Engaging More

In December, Binance Labs announced plans to rebrand in 2025. Changpeng Zhao (CZ) will lead and personally engage with investment projects. CZ served four months in prison for violating the U.S. Bank Secrecy Act and other regulatory issues.

Binance Labs broke away from the exchange Binance and became an independent entity in 2024. The rebranding reflects its evolving vision and distances itself from the exchange.

The investment arm said Binance founder CZ will dedicate more time to investing and directly engaging with projects. CZ is permanently banned from being involved in Binance leadership but is allowed to focus on investments.

Former Binance CEO Changpeng Zhao, commonly known as CZ, has embarked on a new chapter following his recent release from prison after serving four months due to an agreement with US authorities. 

Known for leading Binance to become the largest cryptocurrency exchange by trading volume, CZ is now reestablishing his presence in the industry through social media and public communications.

CZ Sparks Speculation 

This week, CZ stirred excitement in the crypto community by hinting at the possibility of launching a new memecoin inspired by his dog, Broccoli. The name has already sparked considerable speculation, particularly as the popularity of memecoins has surged once again, following trends like the recent TRUMP coin craze.

In a detailed social media post, CZ shared the backstory of Broccoli, a Belgian Malinois he unexpectedly acquired from a friend who owns a zoo in Dubai. The name “Broccoli” was not just a whimsical choice; it reflects CZ’s desire for a name starting with ‘B’ that had a playful sound, reminiscent of “blockchain.”

CZ described Broccoli as a dog that, like himself, wasn’t initially well socialized and had some quirks, such as being easily frightened and untrained. 

He humorously recounted how Broccoli, despite his initial timidness, has grown into a strong and energetic companion, capable of jogging long distances without tiring. These bike rides offered CZ a much-needed respite during his intense negotiations with the Department of Justice.

Former Binance CEO Clarifies Memecoin Possibility 

However, amidst the playful discussions about Broccoli, CZ clarified his position regarding the potential memecoin launch. The former Binance CEO emphasized that while he is sharing his dog’s name and image, he is not officially issuing a memecoin himself.

Instead, he indicated that it would be up to the community to decide whether to create one, stating, “I am just posting a photo of my dog and his name.” He also mentioned plans to interact with existing popular memecoins on the Binance Smart Chain (BSC).

CZ hinted that the BNB Foundation may offer rewards for the most engaging memes created on the BNB Chain, although specific details are still in the works. In addition to the playful speculation around Broccoli, CZ laid out a roadmap for the Binance Chain (BNB Chain) for 2025. 

The roadmap includes ambitious milestones such as sub-second block finality, the ability to handle 100 million transactions per day, gasless transactions, smart wallets, artificial intelligence integration, and an emphasis on memecoins. However, he reiterated that there is no confirmed launch for any specific token at this time.

For those seeking further confirmation, CZ firmly stated, “For those asking for a CA (contract address) from me, no, I am NOT issuing a meme coin.” 

At the time of writing, the Binance Coin, BNB, has remained resilient with a 16% surge in the past week, reaching the $680 mark. 

Featured image from DALL-E, chart from TradingView.com