Paradigm Leads $70M Round for Bitcoin Staking Protocol Babylon

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

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

By leveraging Babylon’s modular design and slashing functionality, PoS systems can significantly enhance their crypto-economic security beyond what native tokens offer.

Babylon believes this approach could unlock value from the over $1 trillion Bitcoin ecosystem, reduce inflation pressure on PoS chains, and increase financial utility for Bitcoin holders. Co-founder David Tse expressed excitement over 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’s growing footprint in crypto funding

Paradigm’s role in the fundraising is significant. The research-driven technology investment firm has been actively involved in crypto investments.

Earlier this year, Bloomberg reported Paradigm’s leadership in a major funding round for Merkle Manufactory, the company behind the Farcaster network. Farcaster, valued at about $1 billion, raised $150 million with Paradigm leading the round, alongside A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto, and others.

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In April, Paradigm announced plans to raise new funds for crypto investments, aiming for up to $850 million as the digital asset industry rebounds. This would be Paradigm’s largest fundraise since 2021, when the firm secured $2.5 billion for a crypto fund—a record at the time, until Andreessen Horowitz’s $4.5 billion crypto-investment fund in May 2022.

Other venture capitalists, including a16z, Hack VC, and Hivemind, are also 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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