YZi Labs Backs USD.AI Stablecoin – Yield-Bearing, AI-Backed Play Raises Big Questions

YZi Labs has announced a strategic investment in USD. AI, a stablecoin protocol designed to bring infrastructure finance (InfraFi) on-chain by providing hardware-backed credit to AI ￰4￱ move indicates YZi Labs’ growing commitment to supporting foundational infrastructure that addresses the massive capital needs of the artificial intelligence sector. ￰0￱ — YZi Labs (@yzilabs) August 26, 2025 ￰5￱ Secures $62.7M TVL as Stablecoin Protocol Targets AI Financing Gap USD. AI, built by Permian Labs, is a yield-bearing synthetic dollar protocol that allows infrastructure providers and AI companies to access non-dilutive loans backed by physical compute ￰6￱ to the announcement, depositors, in turn, will receive a sustainable asset-backed ￰7￱ protocol has already secured backing from top-tier investors, including Framework, Dragonfly, Digital Currency Group, Delphi, and Fintech ￰8￱ traditional financing, which often hinges on long cash flow projections and lengthy approvals, ￰9￱ offers loans secured 1:1 by AI ￰10￱ allows loans to close in under a week, compared to the 60–90 days typical of traditional ￰11￱ capital-intensive sectors, that speed could mean the difference between scaling and ￰12￱ protocol’s adoption curve has been ￰13￱ June, ￰14￱ has grown from virtually zero to more than $62.7 million in total value locked (TVL).

According to data from DeFiLlama, deposits surged past $10 million by mid-June, climbed steadily into the $30–40 million range in July, and accelerated again in August to reach their current all-time high.) August 25, 2025 Pendle, in particular, has been a key supporter, recently launching Boost USDai and sUSDai vaults that integrate with USD. AI’s ecosystem and offer enhanced incentives for liquidity ￰15￱ August 14, ￰16￱ raised $13 million in Series A funding led by Framework ￰17￱ $50 million already in deposits during private beta, ￰18￱ plans a public launch featuring an ICO and a game-based allocation model. We’ve raised a $13.4M in Series A led by @hiFramework to build USDAI, the dollar that scales AI ￰19￱ launch on ￰20￱ — ￰21￱ | Public Launch is Live (@USDai_Official) August 14, 2025 YZi Labs, which manages over $10 billion in assets globally and has backed more than 300 projects across 25 countries, said its decision to support ￰22￱ reflects a belief that new financial primitives are needed to scale AI ￰23￱ Choi, co-founder of USD.

AI, framed the project as a lifeline for a new class of builders who have hardware but lack traditional financing channels. “Not everyone has a CFO or a Wall Street ￰24￱ they do have machines and a future to build,” Choi said. “This is a dollar that scales for the outsiders, and we’re excited to have YZi Labs’ support in that mission.” The backdrop for this innovation is a rapidly escalating capital crunch in the AI ￰25￱ estimate that over $6.7 trillion will be required for compute infrastructure in the next five years, yet much of that financing remains out of reach for all but the largest ￰26￱ of OpenAI’s Sam Altman exploring new financing instruments to raise trillions for infrastructure show just how acute the funding gap has ￰27￱ seeks to address that gap by giving smaller players the same financial access, without diluting equity or waiting months for ￰28￱ Labs Emerges as Force Behind Institutional Push Into BTC and BNB Ecosystems YZi Labs, the rebranded investment arm formerly known as Binance Labs , has accelerated its shift toward institutional adoption and ecosystem expansion. @BinanceLabs has rebranded to YZi Labs, expanding its focus to include AI and biotech investments. #CZ #AI #Binance ￰1￱ — ￰29￱ (@cryptonews) January 23, 2025 Since its relaunch in January, the firm has widened its scope to include artificial intelligence and biotechnology while reinforcing its commitment to ￰30￱ Zhao, Binance’s former CEO, has taken an active role as a mentor to startups within the program, while co-founder Ella Zhang has returned to lead ￰31￱ May, the firm made a major bet on Bitcoin’s DeFi ecosystem through an investment in Avalon Labs , a BTC-based platform developing capital markets around BTC-collateralized lending, stablecoin USDa, and credit ￰32￱ YZi Labs Avalon has invested in @AvalonFinance , growing a BTC-collateralised market with USDa stablecoin, lending and credit services while targeting global licenses. #Bitcoin #DeFi @yzilabs @cz_binance ￰2￱ — ￰33￱ (@cryptonews) May 26, 2025 At the time, Avalon held more than $500 million in total value locked, with over 20,000 BTC under management, making USDa the second-largest CDP project on ￰34￱ Labs’ reach has since extended into treasury ￰35￱ July, it backed the creation of the BNB Treasury Company by 10X ￰36￱ U.

S.-based entity focuses exclusively on BNB Chain investments and is targeting a listing on a major American exchange to give institutional investors direct exposure to BNB, Binance’s $92 billion native ￰37￱ continued in August when China Renaissance (CR), a Hong Kong–listed financial group, partnered with YZi Labs to acquire $100 million worth of ￰38￱ will act as a champion for broader institutional adoption, becoming the first HK-listed firm to hold BNB as a proprietary asset. @BStrategyTech announced a $1B crypto treasury to accumulate BNB with backing from @yzilabs #BNB #CryptoTreasury ￰3￱ — ￰39￱ (@cryptonews) August 25, 2025 Yesterday, a new milestone followed.

B Strategy, a digital asset investment firm led by former Bitmain executives, launched a $1 billion BNB-focused treasury vehicle , with backing from YZi ￰40￱ company, which aims to model itself as the “Berkshire Hathaway of the BNB ecosystem,” plans a ￰41￱ while reinvesting in core BNB projects and community initiatives.