- The Babylon project has made a new round of funding.
- It has received an unnamed amount from Binance Labs.
- Babylon raised $18 million in investment in December 2023.
Binance Labs, the venture capital arm of the cryptocurrency exchange, announced an investment in the Babylon protocol.
We’ve invested in @babylon_chain!
Babylon is a blockchain project that designs security sharing protocols with a mission of scaling Bitcoin to secure the decentralized economy.
Read more👇https://t.co/9f5c2vt38S
- Binance Labs Fund (@BinanceLabs) February 27, 2024
Binance Labs did not name the exact amount of funding. It is known that in December 2023 the project attracted $18 million in investments from Polychain Capital, Hack VC, OKX Ventures and other companies. In addition, in March Babylon received $8 million from IDG Capital and Breyer Capital.
The project is a bitcoin steaking protocol. Users can place assets on blockchains based on the Proof-of-Stake (PoS) consensus mechanism, earning revenue for doing so.
As noted by Binance Labs, the protocol aims to reduce inflationary pressures in PoS blockchains. On top of that, it offers bitcoin holders the opportunity to generate additional revenue in a secure and decentralized way.
“Bitcoin staking is a fundamentally new use case for a digital asset in the industry. It marks a significant step in the integration of blockchain with Proof-of-Stake economics. Binance Labs’ investment in Babylon reflects our commitment to supporting innovative projects related to expanding the use of bitcoin,” said Binance co-founder and head of Binance Labs Yi He.
The protocol is reportedly based on the Cosmos SDK software package. The project is led by a group of experienced Stanford engineers and specialists. Babylon’s main mission is to scale bitcoin to secure the decentralized economy.
“The bitcoin steaking protocol unites the entire blockchain industry. We are excited to support Binance Labs in building the vast Babylon ecosystem,” added David Tse, co-founder of the protocol.
This is not Binance Labs’ first investment in 2024. Previously, the venture capital fund announced its support for the Renzo project and the Puffer Finance liquid steaking protocol. In addition, the company selected three projects to participate in the incubation program: NFPrompt, Ethena Labs and Shogun.
