The post Taiko and Avalon Labs Forge Partnership for Decentralized Finance Innovation appeared on BitcoinEthereumNews.com. James Ding Dec 23, 2025 03:20 TaikoThe post Taiko and Avalon Labs Forge Partnership for Decentralized Finance Innovation appeared on BitcoinEthereumNews.com. James Ding Dec 23, 2025 03:20 Taiko

Taiko and Avalon Labs Forge Partnership for Decentralized Finance Innovation



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.

Image source: Shutterstock

Source: https://blockchain.news/news/taiko-avalon-labs-partnership-defi-innovation

Market Opportunity
Taiko Logo
Taiko Price(TAIKO)
$0.1648
$0.1648$0.1648
-0.66%
USD
Taiko (TAIKO) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Why 100 Percent Test Coverage is Not Possible — Lessons from Testing Banking and Healthcare Systems

Why 100 Percent Test Coverage is Not Possible — Lessons from Testing Banking and Healthcare Systems

Quality is not about testing everything; quality is about testing what is most important.
Share
Hackernoon2025/12/26 16:05
US eyes crypto mining at disputed nuclear plant in Russia-Ukraine conflict: report

US eyes crypto mining at disputed nuclear plant in Russia-Ukraine conflict: report

The plant is located in Ukraine and has been under Russian control since 2022, with its future management a key issue in peace talks.
Share
Coinstats2025/12/26 18:58
Google's AP2 protocol has been released. Does encrypted AI still have a chance?

Google's AP2 protocol has been released. Does encrypted AI still have a chance?

Following the MCP and A2A protocols, the AI Agent market has seen another blockbuster arrival: the Agent Payments Protocol (AP2), developed by Google. This will clearly further enhance AI Agents' autonomous multi-tasking capabilities, but the unfortunate reality is that it has little to do with web3AI. Let's take a closer look: What problem does AP2 solve? Simply put, the MCP protocol is like a universal hook, enabling AI agents to connect to various external tools and data sources; A2A is a team collaboration communication protocol that allows multiple AI agents to cooperate with each other to complete complex tasks; AP2 completes the last piece of the puzzle - payment capability. In other words, MCP opens up connectivity, A2A promotes collaboration efficiency, and AP2 achieves value exchange. The arrival of AP2 truly injects "soul" into the autonomous collaboration and task execution of Multi-Agents. Imagine AI Agents connecting Qunar, Meituan, and Didi to complete the booking of flights, hotels, and car rentals, but then getting stuck at the point of "self-payment." What's the point of all that multitasking? So, remember this: AP2 is an extension of MCP+A2A, solving the last mile problem of AI Agent automated execution. What are the technical highlights of AP2? The core innovation of AP2 is the Mandates mechanism, which is divided into real-time authorization mode and delegated authorization mode. Real-time authorization is easy to understand. The AI Agent finds the product and shows it to you. The operation can only be performed after the user signs. Delegated authorization requires the user to set rules in advance, such as only buying the iPhone 17 when the price drops to 5,000. The AI Agent monitors the trigger conditions and executes automatically. The implementation logic is cryptographically signed using Verifiable Credentials (VCs). Users can set complex commission conditions, including price ranges, time limits, and payment method priorities, forming a tamper-proof digital contract. Once signed, the AI Agent executes according to the conditions, with VCs ensuring auditability and security at every step. Of particular note is the "A2A x402" extension, a technical component developed by Google specifically for crypto payments, developed in collaboration with Coinbase and the Ethereum Foundation. This extension enables AI Agents to seamlessly process stablecoins, ETH, and other blockchain assets, supporting native payment scenarios within the Web3 ecosystem. What kind of imagination space can AP2 bring? After analyzing the technical principles, do you think that's it? Yes, in fact, the AP2 is boring when it is disassembled alone. Its real charm lies in connecting and opening up the "MCP+A2A+AP2" technology stack, completely opening up the complete link of AI Agent's autonomous analysis+execution+payment. From now on, AI Agents can open up many application scenarios. For example, AI Agents for stock investment and financial management can help us monitor the market 24/7 and conduct independent transactions. Enterprise procurement AI Agents can automatically replenish and renew without human intervention. AP2's complementary payment capabilities will further expand the penetration of the Agent-to-Agent economy into more scenarios. Google obviously understands that after the technical framework is established, the ecological implementation must be relied upon, so it has brought in more than 60 partners to develop it, almost covering the entire payment and business ecosystem. Interestingly, it also involves major Crypto players such as Ethereum, Coinbase, MetaMask, and Sui. Combined with the current trend of currency and stock integration, the imagination space has been doubled. Is web3 AI really dead? Not entirely. Google's AP2 looks complete, but it only achieves technical compatibility with Crypto payments. It can only be regarded as an extension of the traditional authorization framework and belongs to the category of automated execution. There is a "paradigm" difference between it and the autonomous asset management pursued by pure Crypto native solutions. The Crypto-native solutions under exploration are taking the "decentralized custody + on-chain verification" route, including AI Agent autonomous asset management, AI Agent autonomous transactions (DeFAI), AI Agent digital identity and on-chain reputation system (ERC-8004...), AI Agent on-chain governance DAO framework, AI Agent NPC and digital avatars, and many other interesting and fun directions. Ultimately, once users get used to AI Agent payments in traditional fields, their acceptance of AI Agents autonomously owning digital assets will also increase. And for those scenarios that AP2 cannot reach, such as anonymous transactions, censorship-resistant payments, and decentralized asset management, there will always be a time for crypto-native solutions to show their strength? The two are more likely to be complementary rather than competitive, but to be honest, the key technological advancements behind AI Agents currently all come from web2AI, and web3AI still needs to keep up the good work!
Share
PANews2025/09/18 07:00