TLDR
Babylon, a project aiming to build a Bitcoin-secured decentralized world, has completed a $70 million funding round led by Paradigm, with contributions from Bullish Capital, Polychain Capital, and other investors.
The funding will accelerate Babylonâs mission to enable Bitcoin to be used as a staking asset for Proof-of-Stake (PoS) systems, such as PoS chains, L2s, Data Availability layers, and oracles.
Babylonâs modular design and slashing functionality will allow PoS systems to introduce Bitcoin as a staking asset, potentially enhancing their crypto-economic security and reducing inflation pressure on native tokens.
The project has already launched the worldâs first trustless Bitcoin staking testnet in February 2024, which saw over 100,000 stakers within 48 hours.
Investors, including Paradigm, Bullish Capital, and Polychain Capital, have expressed their confidence in Babylonâs vision and the potential impact it could have on the utility of Bitcoin and the broader blockchain ecosystem.
Babylon, a crypto startup focused on revolutionizing the role of Bitcoin in the blockchain ecosystem, has successfully raised $70 million in a funding round led by prominent venture capital firm Paradigm.
The round also saw significant contributions from Bullish Capital, Polychain Capital, and other investors, signaling strong confidence in Babylonâs vision to make Bitcoin the security backbone of Proof-of-Stake (PoS) systems.
The Palo Alto-based project aims to build a Bitcoin-secured decentralized world by enabling PoS systems, such as PoS chains, Layer 2s, Data Availability layers, and oracles, to acquire staking capital from Bitcoin.
Through its modular design and slashing functionality, Babylonâs Bitcoin Staking protocol will allow these systems to introduce Bitcoin as a staking asset, potentially enhancing their crypto-economic security beyond what native tokens can provide.
By unlocking value from the vast, idle Bitcoin ecosystem, estimated to be worth over $1 trillion, Babylon seeks to reduce the inflation pressure on PoS chains and enhance the financial utility of Bitcoin for its holders.
As Bitcoin has primarily served as a store of value without generating significant yield, its utilization as a staking asset could redefine its role in the blockchain landscape.
David Tse, co-founder of Babylon, expressed his excitement about the confidence shown by the investors, stating,
âThis funding will accelerate our mission to make Bitcoin the security backbone of PoS systems. Our team is dedicated to advancing the utility of Bitcoin beyond its traditional roles and enhancing the security of the entire blockchain ecosystem.â
Investors have also shared their enthusiasm for Babylonâs innovative approach. Arjun Balaji, Investment Partner at Paradigm, called trustless staking âa novel and fundamental primitive for bitcoin and the broader ecosystem,â while Alasdair Foster, CEO of Bullish Capital, described the ability for holders to stake their Bitcoin while retaining their keys as âa significant breakthrough.â
Luke Pearson, General Partner at Polychain Capital, highlighted the alignment between Polychainâs vision and Babylonâs goal of unlocking Bitcoin to boost the decentralized security market. He added,
âBabylon will be the catalyst that redefines the utility of BTC and paves the way for a new era of Bitcoin-native applications.â
Babylon has already made significant strides in its journey, having launched the worldâs first trustless Bitcoin staking testnet in February 2024, which attracted over 100,000 stakers within 48 hours.
The post Babylon Secures $70M in Funding Round Led by Paradigm to Advance Bitcoin Staking Protocol appeared first on Blockonomi.
