Avalon Labs Plans Bitcoin-Backed Debt Fund Application To SEC

According to Foresight News, Avalon Labs is actively exploring the possibility of applying to the U.S. Securities and Exchange Commission (SEC) for the first Bitcoin-backed debt fund. This initiative aims to enhance the compliance and accessibility of Bitcoin financial products. Avalon Labs believes this move could lower the entry barriers for Bitcoin financial products into the mainstream market, providing a new pathway for the cryptocurrency industry to integrate with the traditional financial system. The co-founder of Avalon Labs successfully issued a dollar-denominated debt fund in 2021, which received SEC approval. Since then, the company has been researching the feasibility of crypto companies issuing listed funds. Avalon Labs plans to collaborate with top U.S. law firms to evaluate the compliance framework for the fund and prepare the necessary application materials. If successful, this fund could become a significant milestone for Bitcoin financial products entering traditional capital markets, further advancing the development of crypto assets within a compliant framework.