DeFi Technologies Inc., a financial technology company bridging the gap between traditional capital markets and decentralized finance (“DeFi”), is pleased to announce a strategic joint venture and foundational equity investment in Fire Labs, Inc. (“Fire Labs”), a next-generation stablecoin infrastructure provider incubated and backed by America First Technology (“AFT”).
As part of the initiative, Fire Labs will integrate with Kraken Embed, the institutional crypto infrastructure platform from Kraken, to support secure and scalable adoption of its regulated, bank-issued stablecoin. This partnership marks DeFi Technologies’ strategic entry into the rapidly expanding Real-World Asset (“RWA“) sector, underpinned by a foundational investment in Fire Labs, a pioneer in digital asset and stablecoin infrastructure, and its backer, AFT.
Pioneering a Regulated Stablecoin
Amid heightened market volatility and rising demand for secure digital assets, DeFi Technologies is positioned to support Fire Labs’ global rollout of a fully regulated, bank-issued stablecoin. Through its subsidiaries, DeFi will help bring to market one of the world’s first USD-backed stablecoins issued directly by a U.S. chartered bank.
The launch comes at a pivotal time in U.S. regulatory development. In early 2025, the U.S. Senate Banking Committee advanced the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), a bipartisan bill aimed at establishing a comprehensive federal framework for fiat-backed stablecoins. The proposed legislation seeks to promote market stability, transparency, and consumer protection, underscoring the importance of robust, regulated stablecoin models like Fire Labs’.
Key features of Fire Labs’ stablecoin infrastructure include:
- Overcollateralization: Backed by a 105% reserve ratio, well above typical regulatory thresholds, offering enhanced security and credibility.
- Yield-Bearing Token: A companion token will allow institutions and users to earn yield backed by the issuing bank’s capital, while remaining fully compliant with regulatory standards.
- Revenue Generation: DeFi Technologies will generate revenue through trading fees, yield participation, and broader integration across its business lines.
The stablecoin and yield token’s infrastructure also opens the door for other interest bearing ETPs off-chain and tokenized ETPs on-chain like dividend paying tokens backed by commodities (opportunities to monetize models like Wheaton Precious Metals streaming metals revenue) and bringing TradFi products like covered call strategy ETFs that pay dividends on-chain.
This next-generation infrastructure is built to support the evolving demands of the digital asset economy, with applications spanning RWA tokenization, cross-border payments, and crypto-native fixed income solutions.
A Transformative Market Opportunity
The market for regulated, bank-issued stablecoins has reached a pivotal moment, with the stablecoin sector’s market capitalization soaring to approximately $225 billion as of early 2025 – an increase of over $100 billion in the past year alone. This growth is fueled by rising demand for RWA tokenization, yield-generating digital assets, global remittances, and institutional adoption.
Fire Labs’ stablecoin launch is positioned to become the first bank-issued, regulated digital dollar, addressing all of these trends with an enterprise-ready foundation.
DeFi Technologies’ Ecosystem: Enabling Global Scale
DeFi Technologies’ business lines will provide full-stack support and scale for the joint venture:
- Valour: Will lead distribution via its regulated ETP platform, broadening access to stablecoin and yield-token products.
- Stillman Digital: Will provide seamless fiat on/off ramps, bridging traditional and blockchain-based assets.
- DeFi Alpha: The Company’s proprietary trading desk will leverage the stablecoin and yield token for arbitrage and yield strategies.
Strategic Partnership and Technological Integration
To support rollout and adoption, Fire Labs has formed a key partnership with major global cryptocurrency exchange Kraken:
Founded in 2011, Kraken is one of the most established and trusted cryptocurrency platforms globally. With over 10 million clients in 190+ countries, Kraken offers access to more than 200 digital assets and supports six fiat currencies, including USD, EUR, and GBP. Its regulated, institutional-grade infrastructure makes it a preferred partner for enterprises, governments, and financial institutions entering the digital asset space.
- Kraken Partnership: Fire Labs will integrate with Kraken Embed, Kraken’s modular crypto infrastructure solution that enables platforms and institutions to offer seamless digital asset services within their own applications. Kraken Embed allows users to buy, sell, and custody crypto assets without leaving the host platform—leveraging Kraken’s secure, regulated backend while maintaining a fully branded user experience. This integration brings institutional-grade trading and custody infrastructure directly into Fire Labs’ stablecoin ecosystem.
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