USD.AI Secures $40 Million Stablecoin Revolving Debt Financing From K3 Capital

AI infrastructure financing protocol USD.AI said it has secured $40 million in stablecoin revolving debt financing from crypto-native asset manager K3 Capital to support the launch of a new financing product. According to ChainCatcher, the facility is backed by sUSDai collateral and provides short-term credit that can be drawn, repaid, and reused on demand. USD.AI said the loan has a three-year term with monthly amortization, allowing capital to move in and out of sUSDai on a shorter cycle. K3 Capital co-founder Kiril Nikolov said the firm looks for market structure inefficiencies and supports teams it trusts, while Permian Labs CEO David Choi said the company is preparing products that require more flexible short-term funding and that K3 designed the on-chain credit arrangement accordingly. The financing builds on an existing liquidity relationship between the two firms. USD.AI provides non-dilutive financing to AI infrastructure operators through non-recourse loans secured by underlying GPU infrastructure. The company previously announced a separate $100 million stablecoin debt financing from Bullish. K3 Capital has managed interest rate arbitrage and liquidity provision strategies since 2021.