YZi Labs Invests in USD.AI Stablecoin Protocol to Bridge AI Financing Gap

YZi Labs has made a strategic investment in USD.AI, a yield-bearing stablecoin protocol designed to provide hardware-backed credit for AI infrastructure operators. The MOVE underscores YZi Labs' focus on addressing the capital-intensive demands of the artificial intelligence sector through decentralized finance solutions.

Built by Permian Labs, USD.AI offers non-dilutive loans collateralized 1:1 by physical compute hardware, enabling AI companies to secure financing in under a week—a significant acceleration compared to traditional 60-90 day funding cycles. The protocol has already attracted $62.7 million in total value locked (TVL) since its June launch, with backing from prominent investors including Framework Ventures and Digital Currency Group.

Unlike conventional stablecoins, USD.AI generates sustainable yields for depositors through asset-backed lending to infrastructure providers. This InfraFi approach could reshape capital formation for compute-intensive industries, though questions remain about risk management in hardware-collateralized DeFi.