Babylon Labs and Fiamma Unite to Unlock Real-World Assets on Bitcoin

Bitcoin ecosystem innovators Babylon Labs and Fiamma have joined forces to advance a decentralized finance ecosystem secured by Bitcoin. This strategic collaboration aims to bring trust-minimized Bitcoin bridges to developers and blockchains, further expanding the utility of Bitcoin within Decentralized Finance (DeFi).

Unlocking Real-World Assets on Bitcoin

Fiamma, a Lightspeed Faction-backed platform, has secured a strategic investment from Babylon Labs to bring its vision of a Bitcoin-secured decentralized world to market. The investment will enable the integration of zero-knowledge technology into Bitcoin through Fiamma’s BitVM2 protocol, unlocking new potential across Bitcoin’s 21 million supply.

The collaboration comes after Fiamma launched the testnet for its Bitcoin bridge in November 2024, followed by the unveiling of a devnet for the first zero-knowledge verification layer for Bitcoin, utilizing BitVM2. This development marks a significant milestone in the growth of real-world applications on Bitcoin.

Empowering DeFi Growth with Bitcoin Staking

Babylon Labs has built the largest Bitcoin staking protocol to date, with over 57,000 BTC staked so far. According to DeFiLlama, the Babylon protocol currently holds a total value locked of over $6 billion. Babylon’s non-custodial platform allows users to stake their BTC to help secure proof-of-stake chains while earning additional rewards on their holdings.

Key Benefits of the Collaboration

  • Trust-minimized Bitcoin bridges for developers and blockchains
  • Integration of zero-knowledge technology into Bitcoin through Fiamma’s BitVM2 protocol
  • Expansion of Bitcoin’s utility within DeFi
  • Enhanced security and rewards for Bitcoin holders through staking

“By combining our expertise and resources, we can unlock new potential for Bitcoin and drive growth in the DeFi ecosystem.”

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