Binance Labs has invested an undisclosed amount in Bitcoin staking protocol Babylon. In recent weeks, Binance Labs has also invested in Ethereum liquid restaking protocols Renzo and Puffer Finance.
Binance Labs announced that it invested in Babylon!
Binance Labs, the $10 billion venture capital and incubation arm of crypto exchange Binance, continues to show interest in initiatives in the fields of staking and restaking. In this regard, he announced that he invested in Babylon, a Bitcoin staking protocol.
Binance Labs did not share any information about the size of its investment. However, Babylon’s co-founder David Tse said in a statement that the investment has the same structure as Babylon’s seed and Series A rounds and that these are token-guaranteed equity rounds. Meanwhile, Babylon raised $18 million in Series A funding in December 2023. Additionally, it managed to raise $8.8 million in seed funding in 2022.
There has been special interest in staking and restaking lately
Binance Labs supports initiatives in the staking and restaking verticals with its recent investments. Kritptokoin.comAs you follow from , Binance Labs invested in Renzo and Puffer Finance in recent weeks. According to DeFiLlama data, these platforms have rapidly risen to become the second and fourth largest Ethereum liquid restaking protocols. David Tse said the investment comes as the protocol prepares to launch test-net this week.
Yi He, president of Binance Labs, made a statement on the issue
Yi He, co-founder of Binance and head of Binance Labs, said in a statement: “Bitcoin staking takes a significant step in the integration of Bitcoin with the Proof-of-Stake economy, offering a very important new use case for the industry. Binance Labs’ investment in Babylon represents our commitment to supporting innovative projects that pioneer the Bitcoin narrative and advance its use cases.” said.
Its developers built Babylon’s own PoS Blockchain using the Cosmos SDK. Thus, it will be the first PoS Blockchain secured by the protocol. It will then enable a marketplace where BTC holders can switch back to other PoS networks via Babylon. David Tse said that with the investment from Binance Labs, Babylon plans to hire more developers. He also stated that he aims to launch the first phase of the main-net before the end of this year.
What is Babylon and what does it do?
Babylon is a Bitcoin staking protocol that allows BTC holders to stake their coins on proof-of-stake blockchains and earn rewards. The protocol will essentially help BTC become a staking asset on PoS networks. Additionally, PoS will use its security to make Blockchains more secure. Currently, PoS Blockchains rely on their native tokens for security. This can be expensive, especially for new blockchains. Because they often need to provide high staking rewards to attract capital.
An example of this is the Cosmos Hub ecosystem, which allows each application to have its own blockchain. Meanwhile, Babylon is currently in the process of supporting the Cosmos Hub ecosystem.
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