Bullish (NYSE: BLSH), a leading institutionally focused digital asset platform, has announced a $4 million strategic investment in USD.AI, the innovative on-chain lending protocol developed by Permian Labs. This marks Bullish’s first investment since its recent IPO, signaling strong confidence in the intersection of blockchain, stablecoins, and artificial intelligence infrastructure.USD.AI, launched by Permian Labs in 2024, specializes in GPU-collateralized stablecoin lending tailored for AI companies.
By accepting high-demand graphics processing units (GPUs) – essential for AI model training and inference – as collateral, the protocol enables rapid loan approvals, slashing processing times by over 90% compared to traditional financing options. Borrowers receive USDai, a dollar-pegged stablecoin, while lenders can earn yield through sUSDai, a staked variant that captures interest from the protocol’s lending activities.
The investment comes at a pivotal moment for USD.AI, which has already amassed $250 million in private beta deposits and is seeing accelerated loan originations. Permian Labs, founded in 2021 by CEO David Choi, COO Conor Moore, and CTO Ivan Sergeev, has now raised a total of over $38 million across rounds, including a $13 million Series A in August led by Framework Ventures with participation from Dragonfly, Arbitrum, and Bullish itself. The company’s earlier funding included backers like DCG, Ethereal Ventures, and Nascent, underscoring its traction in the decentralized finance (DeFi) and real-world assets (RWA) spaces.
“Bullish Capital is thrilled to deepen our partnership with Permian Labs and USD.AI. This investment shows our commitment to bridging traditional finance with the digital economy, particularly in tokenization and stablecoin utility. As AI compute demands skyrocket, USD.AI’s hardware-backed model offers a scalable path to programmable finance, democratizing access to capital for innovators while providing attractive yields for investors.”
For AI startups, often strapped for quick liquidity amid surging GPU costs, USD.AI represents a game-changer. The protocol operates on Arbitrum, leveraging layer-2 efficiency for low-cost, high-speed transactions. With GPUs increasingly viewed as “digital oil” in the AI boom – akin to the resource scarcity of the 19th-century oil rush – USD.AI positions itself as a key enabler, allowing firms to unlock capital without selling vital hardware.
Permian Labs has facilitated over $358 million in cumulative loan volume since inception, and the fresh capital from Bullish will fuel expansion efforts, including broader market access and enhanced protocol features. Plans for a public token launch with gamified distribution mechanics are also on the horizon, aiming to further engage the DeFi community.
