YZi Labs, the rebranded Binance Labs, the investment arm of cryptocurrency exchange Binance, has announced a strategic investment in USD.AI, a stablecoin protocol that provides funding for artificial intelligence (AI) infrastructure.
While the investment amount was not disclosed, it was stated that this move will support USD.AI's goal of developing a synthetic stablecoin solution that provides returns that can scale in parallel with global computing demand.
USD.AI offers a physical asset-based financing model powered by AI hardware and network nodes. According to the official statement, the protocol provides faster liquidity compared to traditional lending funds, collateralizing each loan 1:1 with AI hardware and reducing the loan closing time from 60-90 days to just 7 days.
To date, the protocol has reached over $62 million in total value locked (TVL) and has developed its AutoVaults product in collaboration with key partners such as K3 Capital, Concrete, Euler, and Pendle.
The investment is intended to accelerate USD.AI’s vision of onboarding more developers, expanding infrastructure, and transforming AI hardware financing into a DeFi-based yield product.
Dana Hou, Investment Partner at YZi Labs, commented on the investment:
“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.”
*This is not investment advice.
