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

Babylon plans to use this capital to advance its mission of establishing a Bitcoin-secured decentralized economy. The platform allows various proof-of-stake (PoS) systems, including PoS chains, layer-2 solutions, data availability layers, and oracles, to utilize Bitcoin as a staking asset.

With Babylon’s modular design and slashing functionality, PoS systems can significantly enhance their crypto-economic security beyond what native tokens offer. This approach aims to unlock value from the over $1 trillion Bitcoin ecosystem, reducing inflation pressure on PoS chains while increasing financial utility for Bitcoin holders.

David Tse, co-founder of Babylon, highlighted the significance of the investment.

“We are thrilled by 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.”

Paradigm has been notably active in the crypto investment space. Earlier this year, it played a leading role in 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 new funds for crypto investments, aiming for up to $850 million as the digital asset industry continues to rebound. This would mark Paradigm’s largest fundraise since 2021, when the firm secured $2.5 billion for a crypto fund, a record at the time until surpassed by Andreessen Horowitz’s $4.5 billion crypto-investment fund in May 2022.

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

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