Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Avalon Labs is exploring a Bitcoin-Backed Public Debt under the SEC framework

Source Cryptopolitan

Bitcoin-based DeFi protocol Avalon Labs has announced its plan to launch a Bitcoin-backed debt-focused public fund compliant with the US Securities and Exchange Commission (SEC) regulations. In an announcement on X, the firm said this is part of its plan to expand its products in the US.

According to the company, it is currently researching the possibility of creating Bitcoin-backed financial products. While still in the exploratory phase, Avalon is assessing whether it can use the SEC Regulation A Exemption to launch the debt-focused public fund backed by Bitcoin.

The Regulation A Exemption under the Securities Act of 1933 enables private companies, trusts, and fund managers to access public markets and issue securities to retail investors without becoming a public company. Commonly called the mini-IPO, this exemption allows companies can raise capital through a public offering of their securities without going through the full SEC registration process.

Avalon Labs is evaluating whether it can apply this exemption to issue Bitcoin-backed lending products. The company claims that achieving this could be a major milestone in its efforts to build a Bitcoin-based capital market.

It said:

“By exploring regulated investment structures, we aim to bridge the gap between traditional finance and crypto, opening new opportunities for Bitcoin-backed financial products.”

Meanwhile, Avalon did not provide full details on the public fund but noted that there is no precedence of the SEC applying this exemption for firms in the crypto industry. Still, the company is bullish on its chance. Avalon Labs co-founder Venus Li noted that its analysis of previous SEC approvals shows a viable path ahead.

Li said:

“The SEC’s role is to protect retail investors and ensure fairness, not to hinder technological progress. We are confident they will assess any future applications objectively.”

This view is evidence of the change in the crypto industry sentiments towards the SEC since the exit of Gary Gensler. With the new administration expected to be more permissive, many expect that the industry will see more developments in the next few years.

ByBit list Avalon token

Meanwhile, Avalon’s plan to launch a compliant Bitcoin-backed debt aligns with the company’s broader goal of increasing the adoption of Bitcoin-backed products. The platform, which describes Bitcoin as the only true digital gold, aims to create products that unlock Bitcoin DeFi yield and make it accessible to everyone.

As part of that goal, Avalon already has the USDa stablecoin which is fully collateralized with BTC. The stablecoin which is based on Ethereum has a supply of around $30 million according to data from Defillama.

It remains strongly focused on making Bitcoin become more than a store of value and turning it into a financial instrument capable of serving multiple purposes and generating yield. Late last year, the company completed raising $10 million in Series A funding to grow its Bitcoin DeFi ecosystem.

Beyond its stablecoin, Avalon recently announced that its native token AVL has been listed on the ByBit exchange. With a supply of one billion tokens, the ByBit listing which happened on February 12, has led to other centralized exchanges such as Gate.io and HTX to also list the token.

However, major exchanges such as Binance and Coinbase are yet to list the token. Following its initial listing today, AVL reached as high as $0.598 on CoinGecko, but it is now down more than 30% to $0.4066.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve begins The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

Author Irene Q.

Sep 15, Tue

The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decision The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Author Mitrade

Sep 28, Mon

The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth trading Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

Author Irene Q.

19 hours ago

Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

The 30-year Treasury just hit a 22-year high — and the bond market is not pricing the Fed, it is pricing the deficit The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.

Author Irene Q.

18 hours ago

The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.

Popular Symbols