Babylon, a Bitcoin staking protocol, has secured $70 million in fresh financing. The funding round was led by venture firm Paradigm and saw participation from a host of prominent investors, including Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures, according to a company release.
Babylon’s Innovative Approach to Bitcoin Staking
Babylon is at the forefront of developing infrastructure that enables proof-of-stake (PoS) systems to acquire staking capital from Bitcoin. The platform’s modular design and slashing functionality allow various stake-based systems—such as blockchains, Layer 2 solutions, decentralized application (DA) layers, and oracles—to incorporate Bitcoin as a staking and restaking asset. This innovative approach aims to enhance the utility of Bitcoin beyond its traditional roles and bolster the security of the entire blockchain ecosystem.
David Tse, co-founder of Babylon, expressed his enthusiasm for the new funding round. “This funding will accelerate our mission to make Bitcoin the security backbone of PoS systems,” Tse stated. “Our team is dedicated to advancing the utility of Bitcoin beyond its traditional roles and enhancing the security of the entire blockchain ecosystem.”
Investment from Leading Crypto Firms
The participation of major investors underscores the potential and promise of Babylon’s vision. Polychain Capital, which had previously co-led an $18 million Series A funding round for Babylon in December 2023, has increased its investment in the latest round. Luke Pearson, General Partner at Polychain Capital, highlighted the firm’s commitment to Babylon’s innovative approach. “Polychain is excited to double down our investment in Babylon,” Pearson said. “We align with the vision of unlocking Bitcoin to boost the decentralized security market through Babylon’s trustless design. Babylon will be the catalyst that redefines the utility of BTC and paves the way for a new era of Bitcoin-native applications.”
Babylon has been making strides in the cryptocurrency space prior to this latest funding round. On February 28, Binance Labs, the venture arm of the crypto exchange Binance, invested an undisclosed sum in Babylon. This investment coincided with the launch of Babylon’s public testnet, which featured NFT pass rewards for early participants. These developments have set the stage for Babylon’s ongoing efforts to revolutionize the use of Bitcoin in PoS systems.
The $70 million raised will be pivotal in accelerating Babylon’s development and deployment of its staking infrastructure. By integrating Bitcoin into PoS systems, Babylon aims to create a more secure and versatile blockchain ecosystem. The involvement of high-profile investors such as Paradigm and Polychain Capital not only provides financial support but also adds credibility to Babylon’s mission.
As the largest cryptocurrency by market capitalization, Bitcoin’s potential to enhance the security and functionality of PoS systems represents a significant advancement for the crypto industry. Babylon’s approach could pave the way for new Bitcoin-native applications, further expanding the use cases and value of Bitcoin in the decentralized finance (DeFi) space.