USD.AI Secures $40M Revolving Debt Facility from K3 Capital

AI infrastructure financing protocol USD.AI announced it has secured a $40 million stablecoin revolving debt facility from crypto-native asset management firm K3 Capital to support the launch of new financing products. The facility provides short-term credit collateralized by sUSDai, which can be drawn, repaid, and reused on demand. The USD.AI loan has a three-year term with monthly amortization, with shorter cycles for funds flowing in and out of sUSDai. K3 Capital co-founder Kiril Nikolov stated: K3's strategy is to identify such market structure inefficiencies and support teams it trusts, willing to provide short-term credit collateralized by sUSDai. Permian Labs (developer of USD.AI) CEO David Choi stated that the company is preparing to launch new products requiring more flexible short-term funding sources, and K3 designed the on-chain credit arrangement accordingly. The facility builds on the existing liquidity relationship between the two parties. USD.AI provides non-dilutive financing to AI infrastructure operators, with loans being non-recourse and secured by underlying GPU infrastructure. Previously, USD.AI also announced a $100 million stablecoin debt facility from Bullish. K3 Capital has managed strategies including interest rate arbitrage and liquidity provision since 2021.