Paradigm Leads $70M Funding Round for Bitcoin Staking Protocol Babylon

Paradigm Leads $70M Funding Round for Bitcoin Staking Protocol Babylon

Babylon, a Bitcoin staking protocol, has secured $70 million in a funding round led by prominent venture firm Paradigm. This substantial investment round also saw participation from Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures.

The fresh capital infusion is set to propel Babylon’s mission to create a decentralized economy secured by Bitcoin. The platform enables various proof-of-stake (PoS) systems—including PoS chains, layer-2 solutions, data availability layers, and oracles—to use Bitcoin as a staking asset. By leveraging Babylon’s modular design and slashing functionality, these PoS systems can significantly bolster their crypto-economic security beyond what native tokens can provide.

Babylon claims that this innovative approach could unlock immense value from the over $1 trillion Bitcoin ecosystem. It aims to reduce inflationary pressure on PoS chains while enhancing the financial utility for Bitcoin holders.

David Tse, co-founder of Babylon, expressed his enthusiasm about the investment. “We are thrilled by the confidence shown by Paradigm, Bullish Capital, Polychain Capital, and other investors,” Tse said. “This funding will accelerate our mission to make Bitcoin the security backbone of PoS systems.”

Paradigm’s Expanding Influence in Crypto Funding

Paradigm’s leading role in this funding round underscores its growing influence in the crypto investment space. The research-driven technology investment firm has been highly active in the sector.

Earlier this year, Bloomberg reported Paradigm’s leadership in a significant funding round for Merkle Manufactory, the company behind the Farcaster network. Valued at approximately $1 billion, Farcaster raised $150 million with Paradigm at the helm, alongside A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto, and others.

In April, Paradigm also announced plans to raise up to $850 million for new crypto investments as the digital asset industry continues to rebound. This would be Paradigm’s largest fundraising effort since 2021, when the firm secured $2.5 billion for a crypto fund—a record at the time, later surpassed by Andreessen Horowitz’s $4.5 billion crypto-investment fund in May 2022.

Other venture capitalists, including a16z, Hack VC, and Hivemind, are similarly engaging in fundraising activities, with amounts ranging from $50 million to $150 million, reflecting the renewed momentum in the cryptocurrency sector.

This latest funding round for Babylon highlights the increasing investor interest in innovative crypto solutions and the pivotal role of Bitcoin in securing decentralized finance ecosystems.

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