Taiko, a permissionless, decentralized Ethereum-equivalent-based rollup designed to extend Ethereum, announced a partnership with Avalon Labs, a leading Bitcoin-focused on-chain capital markets platform and USDA issuer of Bitcoin-backed Bitcoin. The primary objective of this strategic partnership is to enable institutions to deploy compliant real-world assets (RWA) with Ethereum-level security.
We're excited to announce our partnership with @avalonfinance_ to deploy institutional RWA infrastructure on Taiko 🥁
Avalon offers audited loan agreements, compliance frameworks, and a complete yield architecture that turns collateral into real returns. Everything is transparent… pic.twitter.com/mPpzLRtb2I
— Taiko.eth 🥁 (@taikoxyz) December 22, 2025
Both platforms are built on fully decentralized systems and strongly believe in decentralizing the entire process. These platforms offer specialized features and contribute to the development of a transparent decentralized finance (DeFi) ecosystem. Avalon Labs will deploy its entire stablecoin and RWA infrastructure on Taiko. Taiko announced this news through the official X account.
Building secure and compliant rails for real-world asset yields
Taiko brings sustainability to stablecoin liquidity, institutional-grade RWA yield products, and permissionless and censorship-resistant rails. Taiko and Avalon Labs are dividing their labor to work properly and efficiently to meet society's digital demands. By working together, their primary objective is to move meaningful liquidity into the Taiko ecosystem and enhance real-world asset acquisition and revenue generation.
Taiko also has a reputation for Avalon's institutional-grade infrastructure, with audited lending agreements, native stablecoin minting and connectivity all deployed directly on the network. On the other hand, this act will not only help Taiko increase its value in the digital world, but also build strong confidence in Avalon Labs in terms of leveling up the product.
Taiko and Avalon Labs partner to provide regulated institutional finance on Ethereum
The Taiko and Avalon Labs integration works in the sense that one platform regulates institutions while the other serves for onboarding and increased workflow. Additionally, this integration enables traditional financial institutions to function on Taiko with confidence. Avalon's yield and capital flows rely on Taiko services to link collateralized deposits, stablecoin minting, and real-world yield sources. The partnership between Taiko and Avalon Labs ensures transparency of records and full on-chain opportunities.
The history behind Taiko's selection is a crowded Layer 2 landscape that Avalon Labs has found beneficial. Because Taiko's area of expertise provides the strongest long-term foundation for institutional-grade tokenized finance.
Additionally, the Taiko rollup-based architecture enables Ethereum decentralization without sacrificing performance, enabling secure and scalable RWA and on-chain capital markets. Additionally, this partnership will facilitate a regulatory-aware pathway for asset tokenization, stablecoin issuance, and instant payments with Taiko pre-verification.
