James Ding
Dec 23, 2025 03:20
Taiko and Avalon Labs have announced a strategic partnership to enhance decentralized finance solutions, focusing on stablecoin liquidity and institutional-grade real-world asset products.
In a significant development within the decentralized finance (DeFi) sector, Taiko has announced a strategic partnership with Avalon Labs, aimed at building a future of sustainable and transparent financial solutions. According to Paragraph, this collaboration will leverage Taiko’s decentralized infrastructure to deploy Avalon Labs’ stablecoin and real-world asset (RWA) infrastructure.
Enhancing DeFi with Decentralized Infrastructure
The partnership is set to introduce sustainable stablecoin liquidity and institutional-grade RWA yield products on Taiko’s platform. This initiative aims to inject meaningful liquidity into the Taiko ecosystem, facilitating real-world asset acquisition and yield generation. Avalon Labs will bring its compliance-ready operations and real-world yield framework to Taiko, positioning it as a credible environment for institutional finance on a decentralized, Ethereum-aligned Layer 2.
Technical and Institutional Advancements
Taiko will become the foundation for Avalon’s institutional-grade infrastructure, featuring audited lending contracts, major oracle integrations, and native stablecoin minting. These components will enhance Taiko’s technical foundation, enabling developers to build advanced financial applications. Additionally, Taiko will integrate Avalon’s compliance-ready operational layer, allowing traditional financial entities to operate confidently while benefiting from the decentralized nature of the platform.
RWA Yield and On-Chain Capital Flow
Avalon’s yield and capital-flow architecture will be executed entirely on Taiko, linking collateral deposits, stablecoin minting, and real-world yield sources. This setup ensures that all liquidity and movements are transparently recorded on-chain, with users interacting natively on Taiko. The partnership underscores Taiko’s potential as a robust platform for institutional-grade tokenized finance, offering secure and scalable solutions without the risks associated with centralized models.
Strategic Importance for Institutional Finance
Taiko’s rollup architecture provides Ethereum-native security and seamless composability, making it an attractive choice for institutions looking to tokenize and trade real-world assets at scale. With approximately 2-second preconfirmations, Taiko offers enterprise-level finality, supporting real-time payments and large-scale asset operations. As Avalon Labs expands its presence on Taiko, the ecosystem is expected to attract more RWA issuers, payment providers, and stablecoin projects, reinforcing the readiness of decentralized infrastructure for institutional-scale adoption.
About Avalon Labs and Taiko
Avalon Labs is a leading on-chain, Bitcoin-focused capital markets platform, known for its USDa stablecoin and extensive loan volume facilitation. Taiko, leveraging based rollup technology, addresses Ethereum’s scalability challenges by reducing transaction costs and enhancing security, offering a seamless user experience with near-instant transaction confirmation.
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Source: https://blockchain.news/news/taiko-avalon-labs-partnership-defi-innovation
