Babylon, a Bitcoin staking protocol, has successfully concluded a $70 million funding round led by Paradigm, with substantial contributions from Bullish Capital and Polychain Capital. This pre-launch funding aims to support team expansion, research, and development in preparation for Babylon’s mainnet launch. The funds will be utilized to advance Babylon’s scalable staking and restaking features, unlocking value from the over $1 trillion idle Bitcoin ecosystem and positioning Bitcoin as the security foundation of Proof-of-Stake (PoS) systems.

Babylon’s protocol enables PoS systems, such as PoS chains, Layer 2 solutions, Data Availability layers, and oracles, to access staking capital from Bitcoin, the largest decentralized crypto asset. By leveraging Bitcoin’s extensive supply and its role as a store of value, Babylon seeks to alleviate inflationary pressures on PoS chains and enhance their financial utility. The protocol’s modular design and slashing functionality empower PoS systems to integrate Bitcoin as a staking asset, providing greater crypto-economic security compared to native tokens.

David Tse, co-founder of Babylon, expressed excitement about the investment, stating, “We are delighted by the confidence shown by Paradigm, Bullish Capital, Polychain Capital, and other investors. This funding will accelerate our mission to establish Bitcoin as the security backbone of PoS systems. Our team is committed to expanding Bitcoin’s utility beyond conventional roles and bolstering the security of the entire blockchain ecosystem.”

Arjun Balaji, Investment Partner at Paradigm, underscored the importance of trustless staking as a groundbreaking fundamental for Bitcoin and the broader ecosystem. Alasdair Foster, CEO of Bullish Capital, praised Babylon’s cryptographic solutions, highlighting the breakthrough in enabling Bitcoin holders to stake their assets while retaining control of their keys. Luke Pearson, General Partner at Polychain Capital, reiterated their support for Babylon’s vision of leveraging Bitcoin to enhance decentralized security markets.

Babylon has achieved 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, showcasing the platform’s potential to evolve Bitcoin into the security foundation of PoS systems. This accomplishment underscores Babylon’s technical expertise and dedication to fostering a secure, decentralized economy.