General · August 27, 2025
Avalon Labs: Bitcoin at Work (Plume Partner Spotlight)
Together, Avalon and Plume are enabling Bitcoin as a productive asset to power DeFi apps and institutional use cases.

This is part of an ongoing case study series "Bitcoin At Work," highlighting the success of Real-World Bitcoin builders on Plume.
Plume’s Real-World Bitcoin mission is simple: turn Bitcoin from the world’s largest idle asset into the backbone of institutional-grade, onchain finance.
By bridging BTC directly into tokenized real-world assets, Plume delivers institutional-grade RWAs with steady, scalable yield.
Making Bitcoin a DeFi-Ready Asset on Plume
Avalon Labs is a leading onchain capital markets platform for Bitcoin-backed lending; and the issuer of USDa – a Bitcoin-collateralized stablecoin. The Avalon team has integrated FBTC liquidity on Plume so users can mint USDa with their wrapped bitcoin token. This unlocks a secure, scalable source of stable liquidity while retaining exposure to FBTC’s upside.
The integration expands BTC’s role in DeFi and opens doors for cross-ecosystem applications across Plume. USDa transforms bitcoin from a passive store of value into a productive DeFi-ready asset.
Users gain access to liquidity, more capital efficiency, and new ways to deploy BTC across lending, trading, and yield strategies, without losing exposure to the underlying asset.
BTC-Backed Liquidity for Institutions
As the most secure and widely held digital asset, bitcoin has the opportunity to play a central role in DeFi.
This security and accessibility, combined with Plume’s high-performance, regulatory-friendly ecosystem designed for real-world assets provides the ideal vehicle to develop and promote real world Bitcoin.
Institutions gain access to a stable and scalable source of liquidity without sacrificing exposure to BTC. Avalon’s over-collateralization and risk management frameworks also ensure yield stability and predictable returns.
The integration with Plume ensures institutions access to a secure, composable ecosystem available for cross-chain strategies, liquidity provisioning, and revenue streams that are compliant and scalable.
Expanding Real World Bitcoin Opportunities
Avalon Labs has already seen $2B+ in TVL with USDa adoption growing steadily.
Looking ahead, the focus on Plume includes:
- Driving deeper USDa adoption to expand BTC-backed liquidity within the ecosystem
- Launching integrations with Plume-native protocols across lending, trading, and yield strategies
- Onboarding institutional partners on-chain while enhancing scalability
- Exploring advanced features such as OEV integration and upgraded risk management tools to strengthen real world Bitcoin growth
- Developing Avalon’s centralized DeFi flows to enable users to borrow stablecoins (like USDT) and to use that liquidity for RWAfi yield generation
By combining Avalon Labs’ Bitcoin-backed lending expertise with Plume’s scalable, compliant DeFi infrastructure, Bitcoin becomes more than a store of value; it's a productive asset that powers a growing range of DeFi applications and institutional use cases.
Open finance together
Work with Plume to issue, distribute, and manage real-world assets.
