Babylon, a pioneering Bitcoin startup, has secured $70 million in funding to develop a unique staking solution that integrates Bitcoin with other blockchain networks.
Led by Paradigm, a prominent crypto venture capital firm, the funding round also saw contributions from Polychain Capital, HashKey Capital, and other investors.
Babylon Aims to Expand Bitcoin’s Utility
Babylon aims to leverage Bitcoin’s security to enable staking across different blockchain platforms. Traditionally, staking is a associated with Proof of Stake (PoS) blockchains. Babylon’s approach is novel as it seeks to implement Bitcoin, a Proof of Work (PoW) asset, in a PoS-like system. This helps to strengthen the safety of other networks and offer new revenue streams for BTC holders.
This funding milestone highlights growing investor confidence in innovative solutions and the potential for Bitcoin to play a more versatile role in the broader ecosystem. Before Paradigm’s involvement, Babylon raised $33 million across several rounds and secured an undisclosed investment from Binance Labs.
“We will continue to push the technical boundaries and foster the Babylon ecosystem. Achieving this requires dedicated efforts from both our core team and the broader community. The funds raised will ensure we excel in realizing our vision of a Bitcoin-secured decentralized economy,” Fisher Yu, Babylon co-founder, told BeInCrypto.
Read more: How To Fund Innovation: A Guide to Web3 Grants
Babylon’s strategy could bridge the gap between Bitcoin’s secure, decentralized nature and the flexible smart contract capabilities of PoS networks. The startup has already made significant progress. In February 2024, it launched the world’s first trustless Bitcoin staking testnet, attracting over 100,000 stakers within 48 hours.
Babylon’s $70 million raise is a significant step toward integrating Bitcoin into the staking economy of other blockchains. By harnessing Bitcoin’s security for staking purposes on networks like Ethereum and Solana, the project is poised to unlock new opportunities for cryptocurrency users and investors. Its innovative approach could set a precedent for cross-chain integrations, further solidifying Bitcoin’s position.
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