Bitcoin staking protocol Babylon has raised $70 million in a funding round led by Paradigm, with participation from Bullish Capital, Polychain Capital, and others. The funds will help Babylon establish a Bitcoin-secured decentralized economy, allowing proof-of-stake (PoS) systems to use Bitcoin as a staking asset.
Babylon’s modular design and slashing functionality enhance PoS systems’ crypto-economic security beyond what native tokens can offer. This could unlock value from the over $1 trillion Bitcoin ecosystem while reducing inflation pressure on PoS chains.
Paradigm’s involvement underscores its growing footprint in crypto funding, having recently led a significant round for Merkle Manufactory. This funding will accelerate Babylon’s mission to make Bitcoin the security backbone of PoS systems.
