The Bitcoin Babylon staking protocol has succeeded Starch $70 million in a financing round led by venture 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 secure, decentralized Bitcoin economy. It allows various proof-of-stake (PoS) systems, such as PoS chains, Layer 2 solutions, data availability layers, and oracles, to use Bitcoin as a storage asset.
Using Babylon's modular design and modular functionality, PoS systems can enhance their cryptoeconomic security far beyond what native tokens offer.
According to Bablon, this approach could unlock value from the $1 trillion-plus Bitcoin ecosystem, significantly reducing inflation pressure on Proof of Stake (PoS) chains while increasing financial benefit for Bitcoin holders.
David Tse, co-founder of Babylon, expressed his happiness with this investment.
“We are pleased 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 security backbone of PoS systems.”
The growing footprint model in crypto finance
The model's role in fundraising is notable. The research-based technology investment company has been actively involved in the field of cryptocurrency investment.
Earlier this year, Bloomberg mentioned Paradigm's lead role in a major funding round for Merkle Manufactory, the company behind the Farcaster network.
Valued at around $1 billion, Farcaster has raised $150 million with Paradigm at the helm, along with A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto and others.
In April, Paradigm also announced plans to raise new funds for cryptocurrency investments, aiming to raise up to $850 million as the digital asset industry continues to recover.
This would mark Paradigm's largest fundraising since 2021, when the company secured $2.5 billion for a cryptocurrency fund, a record at the time until it was surpassed by Andreessen Horowitz's $4.5 billion cryptocurrency investment fund in May 2022.
Other venture capitalists, including a16z, Hack VC, and Hivemind, are similarly participating in fundraising activities with amounts ranging from $50 million to $150 million, reflecting the renewed momentum in the cryptocurrency sector.