Bybit integrates Avalon to offer Bitcoin yield via CeDeFi bridge
Bybit users can now earn Bitcoin yields via CeDeFi bridge
Bybit, a leading cryptocurrency exchange, has announced the integration of Avalon Labs into its yield product suite, Bybit Earn.
The partnership bridges centralized and decentralized finance (CeDeFi) to enable users to earn passive income on their Bitcoin holdings.
The announcement was made on April 14 by Avalon Labs, which described the integration as a significant step toward institutional-grade crypto finance.
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Avalon’s fixed-rate borrowing platform allows institutions to borrow USDt without selling their Bitcoin, offering an 8% fixed borrowing cost. Through the integration, Bybit users can now earn Bitcoin yields by arbitrating this borrowing demand via Bybit Earn.
Bridging Bitcoin Yield from CeFi to DeFi
Avalon Labs positions itself at the intersection of centralized and decentralized finance, enabling broader access to yield opportunities with regulatory safeguards. The integration leverages FBTC, a 1:1 Bitcoin-pegged token created by DeFi protocol Mantle and Antalpha Prime. FBTC tokens are bridged to Ethereum and other blockchains to facilitate DeFi interaction while being backed by Bitcoin reserves.
In March, Avalon revealed it had secured $2 billion in institutional credit, allowing large borrowers to access liquidity without the need to liquidate Bitcoin positions. This structure allows Bybit users to benefit from the demand generated by fixed-rate institutional borrowing.
Future implications and regulatory strategy
Avalon is also exploring the launch of a Bitcoin-backed debt-focused public fund under the U.S. Regulation A securities framework. According to co-founder Venus Li, this could provide a compliant path to bring Bitcoin-backed assets into traditional finance channels.
Bybit’s partnership with Avalon underscores the growing trend of merging DeFi innovations with centralized platforms to offer enhanced earning tools to everyday crypto users.
Earlier we wrote Bybit launches Walrus Wave event with 7,140 WAL prize pool.
