Bitcoin staking is finally unlocking a new way for investors to earn yield📈

Bitcoin holders are looking for things to do with their crypto, according to Babylon co-founder David Tse

As Bitcoin continues to solidify its place as the world’s most secure blockchain, innovative projects like Babylon are pushing the boundaries of what’s possible beyond simply holding the asset.

This week, Babylon co-founder David Tse returned to Coinage to discuss Babylon’s latest developments, including the highly anticipated launch of Bitcoin staking, which saw a flurry of activity that spiked transaction fees on the Bitcoin network as users scrambled to participate.

The milestone represents a significant leap for Bitcoin beyond its traditional use case as a store of value. Babylon’s test launch, which capped Bitcoin staking at 1000 BTC, sparked excitement and led to transaction fees spiking 100x as users vied for early participation.

It’s the first time Bitcoin can be used for staking in a trustless way,” Tse told Coinage in a new interview. “A lot of people wanted to be part of this historical event.”For those unfamiliar with staking, Tse highlighted its importance in securing decentralized networks. While Ethereum has popularized proof-of-stake in the blockchain world, Babylon’s vision is to extend Bitcoin's security to other chains in a trustless manner, meaning users don’t need to rely on third-party custodians to manage their assets.

By staking, users essentially lock up their crypto, in order to earn a yield on top of it. For proof-of-stake networks like Ethereum, staking has been around since 2022. But for Bitcoin, it hasn't been possible until now. Considering how much money has poured into Bitcoin since the approval of the Bitcoin ETFs, the opportunity for Babylon has only gotten juicier.

"When we started educating folks about the idea of Bitcoin staking last year, a lot of people [told] us Bitcoin holders are very conservative. They'll never do anything else on the Bitcoin [network] rather than hold it