Bitcoin staking protocol Babylon secures US$70 million funding round led by paradigm

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31st May 2024 – (New York) Babylon, the Bitcoin staking protocol, has raised $70 million in a funding round led by venture firm Paradigm. Other participants in the round included Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures, according to a company release.

Babylon specializes in building infrastructure that enables proof-of-stake systems to acquire staking capital from Bitcoin. The platform utilizes a modular design and slashing functionality to allow stake-based systems, including blockchains, Layer 2s, DA layers, and oracles, to incorporate Bitcoin as a staking and restaking asset.

Co-founder of Babylon, David Tse, stated that the funding would expedite their mission to establish Bitcoin as the security backbone of proof-of-stake systems. He emphasised the team’s commitment to expanding the utility of Bitcoin beyond its traditional roles and enhancing the overall security of the blockchain ecosystem.

Babylon had previously received funding from Binance Labs, the venture arm of the cryptocurrency exchange Binance, although the exact amount remains undisclosed. On February 28, Babylon launched its public testnet, featuring NFT pass rewards.

Polychain Capital and Hack VC co-led a Series A funding round in December 2023, raising $18 million for Babylon, as previously reported by The Block.

Polychain’s decision to participate in Babylon’s recent funding round reflects its belief in the new use case for Bitcoin, the world’s largest cryptocurrency by market capitalisation. Polychain Capital General Partner Luke Pearson expressed excitement about increasing their investment in Babylon and aligning with the vision of unlocking Bitcoin’s potential to enhance the decentralized security market through Babylon’s trustless design. Pearson believes Babylon will redefine the utility of BTC and pave the way for a new era of Bitcoin-native applications.