Binance Labs, the venture capital and incubation branch of embattled crypto exchange Binance, has recently announced a strategic investment in Babylon, a pioneering Bitcoin staking protocol. This move underscores Binance Labs‘ growing interest in the staking and re-staking sector, following its recent investments in Ethereum liquid re-staking protocols Renzo and Puffer Finance. The investment amount remains undisclosed.
Babylon‘s co-founder David Tse revealed that the deal mirrors the financial structure of previous funding rounds.
Babylon, which has successfully raised $18 million in a Series A round in December 2023 and $8.8 million in seed funding in 2022, is at the forefront of enabling Bitcoin holders to stake their coins on Proof-of-Stake (PoS) blockchains. This innovative approach not only diversifies the utility of Bitcoin but also enhances the security of PoS networks, traditionally reliant on their native tokens. Babylon‘s integration with the Cosmos Hub ecosystem exemplifies its potential to bolster newer chains by mitigating the high costs associated with attracting staking capital.
The investment by Binance Labs arrives as Babylon gears up to launch its testnet, marking a significant milestone in its development. The protocol’s ambition extends to creating its own PoS chain using the Cosmos SDK, positioning it as the first PoS chain secured through its mechanism. This initiative will facilitate a marketplace for BTC holders to re-stake their assets across various PoS networks, leveraging Babylon’s platform.
Yi He, co-founder of Binance and head of Binance Labs, expressed enthusiasm for Babylon‘s mission, highlighting its role in bridging Bitcoin with the PoS economy. This investment reflects Binance Labs’ dedication to fostering innovative projects that expand Bitcoin’s utility and integration within the broader blockchain ecosystem.
With the support of Binance Labs, Babylon is poised to accelerate its development efforts, aiming to launch the first phase of its mainnet by the year’s end. This partnership not only reinforces Binance Labs’ commitment to the staking domain but also signals a promising advancement for Bitcoin’s role in the evolving landscape of blockchain technology.
