The Bitcoin staking protocol Babylon recently completed a successful funding round, raising $70 million with venture firm Paradigm leading the way.
Joining the investment were Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures. This influx of funds will fuel Babylon’s mission to establish a Bitcoin-secured decentralized economy.
The platform’s focus lies in enabling various proof-of-stake (PoS) systems like PoS chains, layer-2 solutions, data availability layers, and oracles to utilize Bitcoin as a staking asset.
Babylon’s modular design and slashing functionality offer PoS systems the opportunity to boost their crypto-economic security well beyond what native tokens can provide.
By leveraging this approach, Babylon believes it can tap into the immense value of the over $1 trillion Bitcoin ecosystem, simultaneously easing inflationary pressures on PoS chains and enhancing financial utility for Bitcoin holders.
David Tse, co-founder of Babylon, conveyed his enthusiasm regarding the investment.
“We are incredibly excited about the trust demonstrated by Paradigm, Bullish Capital, Polychain Capital, and our other investors,” he exclaimed. “This investment will expedite our goal of establishing Bitcoin as the foundational security layer for PoS systems.”
Expanding Influence of Paradigm in Crypto Funding
Paradigm’s involvement in the fundraising is remarkable. This research-focused technology investment firm has been deeply engaged in the crypto investment landscape.
In an earlier report this year, Bloomberg highlighted Paradigm’s pivotal role in a substantial funding round for Merkle Manufactory, the company responsible for the Farcaster network.
With a valuation of around $1 billion, Farcaster secured $150 million in funding with Paradigm leading the charge, accompanied by A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto, and other notable backers.
In April, Paradigm also revealed intentions to raise fresh capital for crypto investments, targeting up to $850 million as the digital asset industry experiences a resurgence.
If successful, this would represent Paradigm’s largest fundraising effort since 2021 when they 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 like a16z, Hack VC, and Hivemind are also actively pursuing fundraising campaigns, with investment sizes ranging from $50 million to $150 million, reflecting the renewed vigor in the cryptocurrency sector.
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