Babylon Chain, a PoS Bitcoin staking protocol, secures investment from Binance Labs.
Binance Labs, the venture capital and incubation arm of Binance, has made a strategic investment in Babylon, an innovative protocol for staking Bitcoin. Babylon introduces a unique method of staking Bitcoin directly on Proof of Stake (PoS) blockchains, eliminating the need for intermediaries like third-party custodians, bridge technologies, or wrapping services. This approach enhances the economic security of PoS chains while providing Bitcoin holders with a more efficient process for unbonding stakes, thereby improving liquidity.
Binance Labs has recently increased its investment activities in the staking and re-staking sectors, signaling a strategic shift towards startups. It has also invested in Puffer Finance and Rezo, two prominent Ethereum liquid re-staking protocols. According to data from DeFiLlama, these investments have made Puffer Finance the second largest and Rezo the fourth largest Ethereum liquid re-staking protocol.
Binance Labs’ investment in Babylon is crucial as the protocol prepares for its mainnet launch by the end of 2024. This support is expected to significantly accelerate Babylon’s development efforts. In addition to the mainnet launch, Babylon aims to expand its support to other ecosystems, such as the Cosmos Hub, and explore new possibilities in crypto staking by integrating Bitcoin into the broader PoS economy.
While the exact financial details of Binance Labs’ investment have not been disclosed, several sources suggest that the amount is comparable to Babylon’s previous funding rounds. These rounds secured $18 million and $8.8 million in seed and series A financing, respectively.
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