Babylon Raises $70 Million to Pioneer Bitcoin Staking on PoS Networks
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 are thrilled by the confidence shown by Paradigm, Bullish Capital, Polychain Capital, and other investors. This funding will accelerate our mission to make Bitcoin the security backbone of PoS systems,” David David Tse, Babylon co-founder, said.
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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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