According to a16zcrypto announcement Babylon, a Bitcoin staking platform, has raised $15 million from a16z Crypto through the purchase of its native BABY tokens, the firm announced on Dec. 7.
Originally launched as a Bitcoin staking protocol that allows holders to earn yield without transferring assets off the Bitcoin network, Babylon is now moving into lending. The expansion centers on its Trustless BTCVaults, a system designed to enable Bitcoin to serve as verifiable onchain collateral without the use of bridges, wrapped tokens, or custodians.
Bitcoin is widely known as a long-term store of value, often compared to digital gold. While it holds trillions of dollars in value, most Bitcoin remains unused beyond being held in wallets.
Founded by Stanford professor David Tse and technologist Fisher Yu, Babylon plans to allow Bitcoin holders to use their assets as collateral for loans without relying on exchanges or third-party custodians. This could make Bitcoin more useful in financial markets while reducing counterparty risk.
Initially, the company will focus on Bitcoin lending, with plans to support more financial products in the future. The move reflects growing interest in turning Bitcoin from a passive asset into a more productive part of the digital economy.
