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Paradigm backs BTC Babylon staking protocol with $70 million round
The Bitcoin Babylon staking protocol has been successful lifted up $70 million in a funding round led by venture capital firm Paradigm.
Babylon’s investment round included participation from Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber and HTX Ventures.
The platform aims to use this new capital to advance its mission of creating a decentralized economy secured by Bitcoin. Allows various betting test (PoS), such as PoS chains, layer 2 solutions, data availability layers and oracles, to use Bitcoin as a staking asset.
Using Babylon’s modular design and clipping functionality, PoS systems can enhance their cryptoeconomic security far beyond what native tokens offer.
According to Babylon, this approach could unlock value from the $1 trillion-plus Bitcoin ecosystem, significantly reducing inflationary pressure on PoS chains while increasing financial utility for Bitcoin holders.
David Tse, co-founder of Babylon, expressed his enthusiasm for the investment.
“We are thrilled with the confidence shown by Paradigm, Bullish Capital, Polychain Capital and other investors,” he said. “This funding will accelerate our mission to make Bitcoin the backbone of PoS system security.”
Growing paradigm in cryptocurrency financing
Paradigm’s role in fundraising is notable. The research-oriented technology investment firm has been actively involved in the crypto investment space.
Earlier this year, Bloomberg reported Paradigm’s leading role in a major funding round for Merkle Manufactory, the company behind the Farcaster net.
Approximately priced $1 billionFarcaster raised $150 million with Paradigm at the helm, along with A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto and others.
Also Paradigm in April announced plans to raise new funds for cryptocurrency investments, targeting up to $850 million as the digital asset sector continues to recover.
This would mark Paradigm’s largest fundraising since 2021, when the company secured $2.5 billion for a crypto fund, a record at the time until surpassed by the $4.5 billion crypto investment fund of Andreessen Horowitz dollars in May 2022.
Other venture capitalists, included a16zHack VC and Hivemind are similarly engaged in fundraising activities, with amounts ranging from $50 million to $150 million, reflecting the renewed momentum in the cryptocurrency sector.