Key Points
- Babylon, a Bitcoin staking protocol, has raised $70 million in funding led by Paradigm.
- The platform aims to make Bitcoin the security backbone of proof-of-stake (PoS) systems.
The staking protocol for Bitcoin (BTC), Babylon, has successfully raised $70 million in a funding round. The round was spearheaded by venture firm Paradigm.
Investors in the Funding Round
Several other firms such as Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures also participated in the funding round.
Babylon is a platform that builds infrastructure to enable proof-of-stake systems to obtain staking capital from Bitcoin. It uses a modular design and slashing functionality to allow stake-based systems like blockchains, Layer 2s, DA layers, and oracles to incorporate Bitcoin as a staking and restaking asset.
Babylon’s Mission and Previous Funding
The co-founder of Babylon, David Tse, stated that the funds raised will be used to fast-track their mission of making Bitcoin the security backbone of PoS systems. He also mentioned their dedication to expanding the utility of Bitcoin beyond its traditional roles and enhancing the security of the entire blockchain ecosystem.
In the past, Binance Labs, the venture arm of the crypto exchange Binance, had invested an undisclosed amount in Babylon. Additionally, Polychain Capital and Hack VC had co-led a Series A funding round of $18 million for Babylon in December 2023.
Polychain Capital decided to reinvest in Babylon due to the potential they see in the new use case for Bitcoin, which is the world’s largest cryptocurrency by market capitalization. Luke Pearson, General Partner at Polychain Capital, expressed excitement about doubling down their investment in Babylon.
He shared their alignment with Babylon’s vision of leveraging Bitcoin to boost the decentralized security market. He also expressed optimism about Babylon’s potential to redefine the utility of BTC and pave the way for a new era of Bitcoin-native applications.
As of May 30, Bitcoin was valued at $68,610, marking a 1.3% increase in the past 24 hours.
