Babylon Seals Largest Bitcoin Investment In Recent History With $70M Funding

Key Points:

• Babylon raised $70 million to link Bitcoin and Ethereum.
• Babylon is enabling Bitcoin as a “staking” asset for other blockchains.

Largest Bitcoin investment recently occurred with Babylon, a crypto startup, raising $70M. The funds will be used to build a bridge between Bitcoin and Ethereum.

Babylon, a crypto startup, recently raised $70 million in a funding round spearheaded by Paradigm, making it the largest investment in the Bitcoin ecosystem in recent times.

Founded by David Tse, an engineering professor at Stanford University, the startup plans to build a bridge between Bitcoin and Ethereum. The funding round, which was also contributed by Polychain and Bullish Capital, will be used to expand staff and further research and development.

The Largest Bitcoin Investment in Recent Times

With recent interest back in Bitcoin projects, the success of the company shows investors and users are getting increasingly interested in building in the Bitcoin ecosystem. David Tse, in an interview, stated that Bitcoin is in a renaissance, experiencing a new wave of projects building on it.

Interest in Bitcoin has grown with the recent approval and launch of Bitcoin exchange-traded funds in the US and the Bitcoin “halving” event in April.

Babylon is pioneering a project that will allow Bitcoin to be used as a “staking” asset to secure other blockchains.

Staking is a mechanism that runs Ethereum and other proof-of-stake blockchains, and Babylon wants to allow Bitcoin holders to participate in validating transactions on proof-of-stake networks, earning yields on their Bitcoin. David Tse added that their project is sort of like Ethereum’s staking, but for Bitcoin.

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The Rise of Staking in the Digital-Asset Industry

The incentive to make Bitcoin a staking asset is high since a lot of Bitcoin holders have long desired to generate yield from their Bitcoin, especially after Ethereum revamped its network to the more energy-efficient proof-of-stake setup.

Tse centered his vision on security in crypto web3 and called for Bitcoin to underwrite the security layer for the entire Web3 ecosystem.

Staking is currently one of the most profitable sectors of the digital-asset industry, with users sending more than $50 billion in crypto to the top two staking projects, Lido Finance and EigenLayer, to generate returns.