Bitcoin
Bitcoin Startup Babylon Raises $70 Million to Expand BTC Staking
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 leading crypto venture capital firm, the funding round also featured contributions from Polychain Capital, HashKey Capital and other investors.
Babylon aims to expand the utility of Bitcoin
Babylon intends to leverage Bitcoins security to allow staking on different blockchain platforms. Traditionally, staking is associated with Proof of Stake (PoS) blockchains. Babylon’s approach is new as it seeks to implement Bitcoin, a Proof of Work (PoW), in a system similar to PoS. This helps strengthen the security of other networks and provide new revenue streams for BTC holders.
This funding milestone highlights investors’ growing confidence in innovative solutions and the potential for Bitcoin to play a more versatile role in the broader ecosystem. Prior to Paradigm’s involvement, Babylon raised $33 million in multiple rounds and secured an undisclosed investment from Binance Labs.
“We will continue to push technical boundaries and advance the Babylon ecosystem. Achieving this requires dedicated efforts from both our core team and the broader community. The funds raised will ensure we excel in realizing our vision of a Bitcoin-secured decentralized economy,” Fisher Yu, co-founder of Babylon, told BeInCrypto.
See more information: How to Finance Innovation: A Guide to Web3 Grants
Financing of the Babilônia Chain. Source: Base crunch
Babylon’s strategy could bridge the gap between Bitcoins secure, decentralized nature and 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 towards integrating Bitcoin into the staking economy of other blockchains. By leveraging the security of Bitcoin for staking purposes on networks such as Ethereum It is 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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