Binance founders’ YZi Labs backs GPU-backed USD.AI stablecoin
YZa Labs, a fund led by Binance founders Changpeng Zhao and Yi He, has invested in USD.AI, a new DeFi protocol issuing a yield-bearing stablecoin backed by AI hardware loans. The stablecoin lets AI hardware operators pledge GPUs as collateral to access financing. USD.AI mints tokens fully backed 1:1 by the value of GPU-collateralized loans, with yields derived from lending activities. The protocol has achieved $62 million in total value locked (TVL) and secured lending partners including K3 Capital, Concrete, Euler and Pendle. Co-founder David Choi says the stablecoin delivers scalable dollar liquidity for builders outside traditional finance, while YZi Labs Investment Partner Dana Hou highlights its role in bridging Web3 with real-world demand.
Bullish
YZi Labs’s investment in USD.AI stablecoin marks growing convergence between DeFi and AI infrastructure finance. Introducing GPU-backed stablecoins creates a new collateral category, enhancing liquidity options for AI hardware operators. This aligns with previous bullish responses to DeFi protocols expanding collateral types, such as MakerDAO’s real-world asset integrations, which broadened on-chain lending markets. In the short term, the news could draw increased trading volume in AI-focused crypto projects and stablecoin markets as traders seek yield opportunities. Over the long term, it strengthens DeFi’s credibility, encourages further innovation around asset-backed tokens, and may drive wider adoption of stablecoins beyond traditional fiat collateral. Overall, this development should support positive market sentiment and bolster liquidity.