USD.AI Approves $500M On-Chain Loan to Sharon AI in DeFi Liquidity Grab

VADODARA, January 22, 2026 — On-chain lending protocol USD.AI has executed a $500 million loan facility to Australian AI infrastructure provider Sharon AI. This latest crypto news represents one of the largest single-tranche DeFi loans ever recorded, collateralized entirely by tokenized GPU assets. Market structure suggests this is a strategic liquidity grab targeting undervalued AI hardware collateral.

Market Context & Background

DeFi lending protocols have historically focused on crypto-native collateral. The shift to tokenized real-world assets (RWAs) like GPUs marks a structural evolution. According to on-chain data from Etherscan, RWA collateralization in DeFi has grown 300% year-over-year. This mirrors the 2021 surge in NFT-backed loans but with institutional-grade assets. The transaction occurs amid a broader trend of traditional finance infrastructure migrating on-chain, as seen in recent developments like Ondo Finance's tokenization of BitGo stock and Chainlink's acquisition of Atlas to combat MEV leakage.

What Happened?

USD.AI, a blockchain-based lender specializing in AI startups, approved the $500 million facility on January 22, 2026. The Block first reported the transaction. Sharon AI will use the capital to expand its GPU deployment, with an initial $65 million allocated for GPU acquisition this quarter. The loan is collateralized by tokenized GPU assets, creating a verifiable on-chain lien. USD.AI's model targets AI companies facing traditional financing barriers, leveraging smart contracts for automated collateral management and liquidation.

Technical Analysis & Price Action

Bitcoin currently trades at $89,363, down 1.70% in 24 hours. The 200-day moving average at $87,500 provides immediate support. RSI sits at 42, indicating neutral momentum with bearish bias. A Fair Value Gap (FVG) exists between $91,000 and $92,500 from last week's sell-off. This zone acts as a liquidity pool for potential short squeezes. Bullish invalidation: A weekly close below the 0.618 Fibonacci retracement at $85,000 would signal structural breakdown. Bearish invalidation: A reclaim of the $93,000 order block would invalidate the current downtrend.

By The Numbers

Why It Matters

Institutionally, this transaction demonstrates DeFi's capacity to finance real-world infrastructure at scale. Tokenized GPU collateral creates a new asset class for yield generation. Retail impact is indirect but significant: successful RWA integration could drive capital inflows into DeFi protocols, boosting native token valuations. The deal also highlights regulatory arbitrage, as on-chain lending avoids traditional banking bottlenecks detailed in recent debanking litigation.

Community Sentiment

Market analysts on X/Twitter note the transaction's size. One quant observed: "$500M loan against tokenized GPUs shows DeFi maturity. This isn't speculative leverage—it's productive capital." Others caution about collateral volatility, citing GPU depreciation curves. The sentiment aligns with broader stablecoin growth projections, as highlighted in Circle's 40% annual growth forecast.

Price Prediction / Future Outlook

Bullish Case: Successful loan performance validates RWA collateralization. More AI firms seek on-chain financing. DeFi total value locked (TVL) increases 25% in 2026. Bitcoin reclaims $100,000 as institutional confidence returns.Bearish Case: GPU collateral value declines faster than loan repayment. Default triggers smart contract liquidation, causing cascading sell pressure. DeFi TVL contracts 15%. Bitcoin tests $80,000 support.