TLDR
- DeFi Technologies and Fire Labs partner to launch a USD-backed, regulated stablecoin issued by a U.S. chartered bank.
- The stablecoin will be overcollateralized at 105% and offer a companion yield-bearing token for institutional investors.
- Kraken Embed integration ensures secure, scalable access within regulated enterprise platforms.
- DeFi Technologies gains a 19.5% stake in AFT, reinforcing its Real-World Asset (RWA) strategy and stablecoin infrastructure.
- The project aligns with the pending GENIUS Act and targets institutional use cases like payments, ETPs, and fixed income.
DeFi Technologies has launched a strategic joint venture with Fire Labs to introduce a regulated, USD-backed stablecoin. The stablecoin will be issued by a U.S. chartered bank, meeting full compliance standards under proposed federal regulation. This move marks DeFi Technologies’ entry into the Real-World Asset (RWA) sector with a revenue-focused infrastructure model.
USD-Backed Stablecoin to Drive Regulated Digital Asset Use
DeFi Technologies confirmed its foundational equity stake in Fire Labs to lead the rollout of a regulated stablecoin. The asset will be overcollateralized at 105%, ensuring enhanced security beyond standard reserve ratios. As part of the framework, a yield-bearing token will offer bank-backed returns for institutional users.
Strategic Joint Venture to Launch Regulated Stablecoin: DeFi Technologies has entered into a joint venture and made a lead equity investment in Fire Labs, a stablecoin infrastructure provider backed by America First Technology (“AFT”). This partnership marks DeFi Technologies’…
— DeFi Technologies (@DeFiTechGlobal) May 20, 2025
The stablecoin will be issued directly by a U.S. chartered bank and supported by Kraken Embed. This integration will enable secure access within regulated platforms and ensure scalability across enterprise ecosystems. The digital dollar aligns with the pending GENIUS Act, which promotes a clear federal structure for fiat-backed stablecoins.
DeFi Technologies plans to generate revenue through yield participation and trading activity tied to the token ecosystem. The company aims to distribute stablecoin products through Valour, which offers regulated ETPs. Meanwhile, its proprietary desk, DeFi Alpha, will apply yield strategies and arbitrage models across integrated networks.
Fire Labs Infrastructure Targets Institutional Compliance and Yield
Fire Labs will manage the technical infrastructure and issue the stablecoin under strict regulatory standards. The company will offer a companion yield token to provide compliant returns sourced from regulated bank capital. These features address growing institutional demand for secure and profitable digital assets.
The infrastructure will also support additional financial instruments, including interest-bearing ETPs and on-chain dividend products. These products may extend to commodities-based assets or derivatives such as covered-call ETFs. This model bridges traditional finance and blockchain by offering real-world asset tokenization on a compliant foundation.
With digital assets gaining regulatory clarity, the launch presents a competitive edge for bank-issued stablecoins. Fire Labs’ infrastructure will support use cases including payments, RWA markets, and fixed income solutions. Kraken’s integration allows Fire Labs to offer these services within institutional-grade applications.
DeFi Technologies Expands Ecosystem with Minority Stake in AFT
Alongside the Fire Labs venture, DeFi Technologies acquired a 19.5% stake in CH Technical Solutions SA, operating as AFT. The company issued 1.6 million shares to complete the transaction, pending Cboe Canada Exchange approval. This acquisition strengthens DeFi’s exposure to stablecoin infrastructure and media technology assets.
The company used exemption provisions under securities regulation to complete the equity transfer without minority shareholder approval. AFT serves as a key backer of Fire Labs, providing strategic value to the joint venture. This deal reinforces DeFi Technologies’ broader RWA strategy.
With stablecoin market capitalization surpassing $225 billion, the timing aligns with institutional momentum. The partnership enhances access to compliant yield products and regulated digital payments. DeFi Technologies now positions itself as a secure, scalable stablecoin infrastructure leader.
