Cryptocurrency network Babylon Chain secures $70 million in funding, spearheaded by investment firm Paradigm
In a significant move for the cryptocurrency industry, Babylon Chain has completed a $70 million funding round led by Paradigm. The funding will be used to advance the utility of Bitcoin and enhance the security of the entire blockchain ecosystem.
David Tse, co-founder of Babylon, stated that the funding will accelerate their mission to make Bitcoin the security backbone of Proof-of-Stake (PoS) systems. Tse's team is dedicated to advancing the utility of Bitcoin beyond its traditional roles, aiming to build a Bitcoin-secured decentralized economy.
Babylon's Bitcoin staking protocol can reduce PoS chains' inflation pressure and enhance Bitcoin's financial utility to holders. This novel and fundamental primitive for Bitcoin, as commented by Arjun Balaji, Investment Partner at Paradigm, allows Proof-of-Stake systems to acquire staking capital from Bitcoin.
Arjun Balaji expressed excitement about partnering with David Tse and the Babylon team, who are among the best researchers and builders pushing at the frontier of Bitcoin innovation. The funding round also had participation from Bullish Capital, Polychain Capital, and others, but the exact list of participants beyond Paradigm is not specified in the provided search results.
With over $1 trillion in market cap, Babylon's scalable staking and restaking features will allow it to unlock more revenue opportunities from the Bitcoin ecosystem. The success of Babylon's trustless Bitcoin testnet, which saw over 100,000 stakers within 48 hours following its launch in February 2024, is a testament to the demand for such a service.
Babylon Chain is expanding the utility of the world's biggest cryptocurrency by market cap, Bitcoin. By enabling PoS chains, L2s, Data Availability layers, and oracles to leverage Bitcoin's security, Babylon is set to play a crucial role in the future of the blockchain ecosystem. The team at Babylon is determined to make Bitcoin the security backbone of decentralised systems, and with this funding round, they are one step closer to achieving their goal.
