USD.AI is a decentralized stablecoin protocol designed to bridge decentralized finance (DeFi) with the AI industry. It issues USDai, a synthetic USD-pegged stablecoin, and sUSDai, a yield-bearing variant, both collateralized by tokenized GPU hardware and computational assets.
This allows AI companies to borrow against their high-value GPUs like NVIDIA chip for quick, equity-free capital, while depositors earn yields from the income generated by these assets.
Built by Permian Labs and launched on Arbitrum for low-cost, scalable transactions, USD.AI addresses the massive funding needs of AI startups by turning idle compute hardware into on-chain collateral.
Recent Funding and Growth
In August 2025, USD.AI raised $13M in Series A funding led by Framework Ventures, with participation from Dragonfly, Bullish, Arbitrum Foundation, and Digital Currency Group (DCG).
This capital is fueling expansion of GPU-backed lending and a public launch. During its private beta, the protocol quickly amassed $50M in deposits, demonstrating strong early demand for AI-linked yields.
USD.AI announced a major expansion of its pre-deposit vaults ahead of the full public launch. $500M up from $160M, which was reached just weeks earlier on. $250M allocated exclusively to the Plasma Foundation, a partner focused on efficient stablecoin settlement and cross-border payments.
Deposits open September 23, 2025, at 12 PM EST (16:00 UTC) via Ethereum Mainnet using USDC. This is positioned as potentially the “last raise before liquidity floods in,” aligning with an upcoming ICO 7% supply at $300M FDV, 100% TGE and airdrop 3% supply for stakers, with 30-day withdrawal lockups.
Token generation event (TGE) is expected in Q1 2026. This move reflects surging interest in AI-DeFi convergence, where stablecoins like USDai enable real-world asset (RWA) tokenization of GPUs. Analysts see it as a blueprint for scaling AI infrastructure financing, similar to how stablecoins revolutionized remittances.
For AI Builders it enhance faster loans 90% quicker than traditional lenders without diluting equity, backed by compute income. For Depositors: Earn T-Bill-like yields 98% backed by T-Bills, 2% by NVIDIA/Rockchip assets while supporting AI growth.
Stablecoin market cap is projected to hit $1T by 2026, with AI x crypto narratives driving new use cases like GPU vaults and autonomous agents. By raising the deposit cap to $500M, USD.AI can provide more AI companies with access to non-dilutive capital by collateralizing their GPU hardware.
This could accelerate AI development, as startups gain faster access to funds (90% quicker than traditional lenders) without sacrificing equity. The platform’s model of tokenizing high-value compute assets (e.g., NVIDIA GPUs) sets a precedent for real-world asset (RWA) integration in DeFi.
This could inspire similar platforms to tokenize other AI-related assets, like datasets or proprietary models, expanding the market for compute-backed finance. The $500M cap expansion, with $250M allocated to the Plasma Foundation, signals robust demand for yield-bearing stablecoins.
Depositors can earn T-Bill-like returns potentially drawing institutional and retail capital into DeFi. The partnership with Plasma Foundation for efficient stablecoin settlement suggests USD.AI could play a role in cross-border payments, competing with traditional systems like SWIFT.
The cap raise, timed before a Q1 2026 token generation event (TGE) with a $300M fully diluted valuation (FDV) and 7% token supply, positions USD.AI to capitalize on the growing AI x crypto narrative. The planned airdrop (3% supply for stakers) could drive early adoption and speculative interest.
The rapid cap increase from $160M to $500M in weeks reflects high demand but also raises concerns about over-leveraging or mismanaging GPU collateral. If GPU valuations drop it could impact USDai’s peg stability or depositor confidence.
USD.AI’s unique focus on GPU-backed stablecoins sets it apart from traditional stablecoins (e.g., USDT, USDC) and other RWA platforms (e.g., real estate tokenization). However, it faces competition from emerging AI-DeFi protocols and must maintain trust in its collateral management.
Built on Arbitrum for low-cost, scalable transactions, USD.AI’s growth could further solidify Arbitrum as a go-to layer-2 for DeFi and AI applications. This may drive more projects to Arbitrum, boosting its TVL and ecosystem.
USD.AI’s model lowers barriers for AI startups, especially smaller players, to access capital without relying on venture capital or traditional banks. This could democratize AI innovation, particularly in regions with limited access to funding.
GPU-heavy AI compute is energy-intensive. If USD.AI’s growth fuels more GPU purchases or usage, it could face scrutiny over its environmental footprint unless mitigated by sustainable practices (e.g., green energy for data centers).
Tokenizing physical assets and issuing stablecoins invites regulatory attention, especially in jurisdictions like the U.S. where stablecoin oversight is tightening. USD.AI’s $500M cap and upcoming ICO may attract scrutiny, potentially impacting operations or investor sentiment.
The Series A backing from major players like Framework Ventures and Dragonfly, combined with the cap raise, signals strong investor confidence. However, the 7% ICO supply and $300M FDV suggest a high valuation, which could limit upside for late investors if not matched by growth.
