Babylon, a Bitcoin staking protocol, has successfully raised $70 million in a funding round led by venture firm Paradigm. The investment round saw participation from prominent firms such as Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures.

Pioneering a Bitcoin-Secured Decentralized Economy

Babylon plans to utilize the new capital to further its mission of creating 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. Through Babylon’s modular design and slashing functionality, PoS systems can significantly enhance their crypto-economic security beyond what native tokens offer.

Babylon’s innovative approach aims to unlock value from the over $1 trillion Bitcoin ecosystem, thereby reducing inflation pressure on PoS chains and increasing financial utility for Bitcoin holders.

Enthusiasm from Babylon’s Co-Founder

David Tse, co-founder of Babylon, expressed his excitement over the successful investment round. “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 role in Babylon’s fundraising highlights its growing footprint in the crypto investment space. Earlier this year, Paradigm led 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 announced plans to raise up to $850 million for new crypto investments, marking its largest fundraise since 2021, when the firm secured $2.5 billion for a crypto fund. This record was later surpassed by Andreessen Horowitz’s $4.5 billion crypto-investment fund in May 2022.

Renewed Momentum in the Cryptocurrency Sector

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