Paradigm Leads $70 Million Investment in Bitcoin Staking Protocol Babylon

The Block reported that Paradigm led a $70 million funding round for Babylon, a company that created a new system allowing Bitcoin to be used for staking in proof-of-stake blockchains. This funding will help Babylon achieve its goal of making Bitcoin a major security source for these types of blockchains.

Babylon's platform uses modular design and slashing functionality to let stake-based systems, such as blockchains, Layer 2s, DA layers and oracles, incorporate bitcoin as a staking and restaking asset.

"This funding will accelerate our mission to make Bitcoin the security backbone of PoS systems," Babylon co-founder David Tse said in a statement. "Our team is dedicated to advancing the utility of Bitcoin beyond its traditional roles and enhancing the security of the entire blockchain ecosystem."

Binance Labs, the venture arm of the crypto exchange Binance, previously invested an undisclosed sum in Babylon on Feb. 28. Polychain Capital and Hack VC also co-led a December 2023 Series A funding round of $18 million.

"Polychain is excited to double down our investment in Babylon," Polychain Capital General Partner Luke Pearson said in a statement. "We align with the vision of unlocking Bitcoin to boost the decentralised security market through Babylon's trustless design. Babylon will be the catalyst that redefines the utility of BTC and paves the way for a new era of Bitcoin-native applications."

Resources:

The Block