Bitcoin staking platform Babylon has recently completed a successful funding round, raising $70 million with Paradigm leading the investment. Other participants in Babylon’s funding round included Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures.
The platform’s goal is to utilize this new capital to advance its mission of establishing a Bitcoin-backed decentralized economy. Babylon enables various proof-of-stake (PoS) systems, such as PoS chains, layer-2 solutions, data availability layers, and oracles, to utilize Bitcoin as a staking asset. Through Babylon’s modular design and slashing functionality, PoS systems can significantly enhance their crypto-economic security, surpassing what native tokens can offer.
By adopting this approach, Babylon believes it can unlock value from the massive $1 trillion Bitcoin ecosystem, thereby reducing inflation pressure on PoS chains while enhancing financial utility for Bitcoin holders. David Tse, co-founder of Babylon, expressed his excitement about the investment, stating, “We are delighted by the trust shown by Paradigm, Bullish Capital, Polychain Capital, and other investors. This funding will accelerate our mission to establish Bitcoin as the security foundation of PoS systems.”
Paradigm’s involvement in the fundraising is significant, as the research-driven technology investment firm has been actively engaged in the crypto investment space. Earlier this year, Paradigm played a crucial role in a substantial funding round for Merkle Manufactory, the company behind the Farcaster network, which raised $150 million with a valuation of approximately $1 billion. In April, Paradigm announced plans to raise up to $850 million for crypto investments, reflecting the growing interest in the digital asset industry.
Additionally, other venture capitalists like a16z, Hack VC, and Hivemind are also actively participating in fundraising activities, with amounts ranging from $50 million to $150 million, signaling a resurgence in the cryptocurrency sector.