Babylon Secures $70 Million for Bitcoin PoS Security Backbone

By: Eva Baxter

Babylon, a promising Bitcoin staking protocol, has successfully raised $70 million in a funding round led by Paradigm. The round saw significant contributions from Bullish Capital and Polychain Capital, which underscores the confidence the investment community has in Babylon's vision. The pre-launch funding aims to bolster team growth, research, and development ahead of Babylon's mainnet launch. These funds are earmarked to advance Babylon's scalable staking and restaking features, unlocking value from the idle $1+ trillion Bitcoin ecosystem, and positioning Bitcoin as the security backbone of Proof-of-Stake (PoS) systems.

Babylon's protocol enables PoS systems, including PoS chains, Layer 2 solutions, Data Availability layers, and oracles, to obtain staking capital from Bitcoin, the largest decentralized crypto asset. By harnessing Bitcoin's vast supply and its role as a store of value, Babylon seeks to reduce inflation pressure on PoS chains and enhance their financial utility. The protocol's modular design and slashing functionality allow PoS systems to introduce Bitcoin as a staking asset, providing higher crypto-economic security than native tokens.

David Tse, co-founder of Babylon, expressed enthusiasm regarding the investment, stating, "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. Our team is dedicated to advancing the utility of Bitcoin beyond its traditional roles and enhancing the security of the entire blockchain ecosystem."

Arjun Balaji, Investment Partner at Paradigm, highlighted the importance of trustless staking, calling it a novel and fundamental primitive for Bitcoin and the broader ecosystem. Alasdair Foster, CEO of Bullish Capital, praised Babylon's cryptographic solutions, emphasizing the breakthrough in allowing Bitcoin holders to stake their assets while retaining their keys. Luke Pearson, General Partner at Polychain Capital, reiterated their support for Babylon's vision of unlocking Bitcoin to enhance the decentralized security market.

Babylon's journey has been marked by significant milestones, including the launch of the world's first trustless Bitcoin staking testnet in February 2024. The testnet attracted over 100,000 stakers within 48 hours, demonstrating the platform's potential to evolve Bitcoin into the security backbone of PoS systems. This achievement showcases Babylon's technical prowess and commitment to fostering a secure, decentralized economy.