YZi Labs Backs USD.AI as AI Stablecoin Tops $62M TVL and Expands Crypto Infrastructure

TLDR:

• YZi Labs confirmed its investment in USD.AI, a hardware-backed stablecoin designed to finance AI infrastructure with crypto credit.
• USD.AI surpassed $62 million in Total Value Locked after securing partnerships with firms including K3 Capital and Euler.
• The protocol offers lending backed 1:1 by AI hardware, reducing closure time from months to under a week.
• Global AI infrastructure demand may reach $6.7 trillion within five years, according to YZi Labs in its statement.

Crypto venture activity is shifting toward real-world infrastructure, and one new move has been notable. YZi Labs confirmed an investment in USD.AI, a yield-bearing stablecoin protocol built to finance artificial intelligence hardware. 

The backing shows how crypto capital is being directed into physical assets, not only tokens. USD.AI is aiming to reshape credit models for builders who lack traditional financial access. The company says its approach can deliver faster capital and new financial rails for AI growth.

USD.AI Gains Traction With $62M Locked in Crypto Stablecoin

According to a post shared by Wu Blockchain on X, the investment details remain undisclosed. Still, the focus is clear: scale the financing model for AI infrastructure through a stablecoin system. 

USD.AI already passed $62 million in assets locked on-chain, showing traction in both crypto and AI markets. This milestone follows previous funding of $13 million from Framework Ventures, Dragonfly, Bullish, and Arbitrum.

YZi Labs described the move as part of its commitment to foundational infrastructure. In its official statement, the firm pointed to the rising cost of compute and the limited access to capital for smaller operators. 

The protocol’s design gives borrowers speed, with loans collateralized by physical AI machines and closed in under seven days. That timeline contrasts with the two to three months often seen in traditional credit funding.

The AI sector is expected to require trillions of dollars in infrastructure over the next five years. YZi Labs referenced this demand, stating the industry faces a shortage of accessible capital. 

By linking stablecoins to real-world assets, USD.AI intends to close that gap. Its model creates incentives for depositors, borrowers, and infrastructure providers at the same time.

USD.AI Stablecoin Targets Growth in Crypto and AI Markets

USD.AI’s stablecoin is structured to grow alongside computing demand. Its loans are secured directly against hardware, offering crypto-native financing to operators without access to banks or Wall Street networks. YZi Labs highlighted this model as a financial primitive designed for long-term use.

The protocol has already secured collaborations with K3 Capital, Concrete, Euler, and Pendle. These partnerships have supported its AutoVaults product, designed to manage lending flows and capital allocation. By tying yield directly to hardware productivity, USD.AI positions itself differently from cashflow-based lending.

The company said its mission is to onboard more builders quickly. Faster funding cycles could help smaller AI projects scale in ways that were previously restricted by capital constraints. By aligning deposits with asset-backed collateral, USD.AI is presenting a product that blends DeFi mechanics with real-world usage.

YZi Labs’ statement noted the founders’ persistence in building through multiple market cycles. The team aims to develop a stablecoin system that addresses practical financing challenges, not just crypto speculation. This push comes at a time when AI growth and blockchain capital are increasingly intersecting.

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