Babylon Raises Funds to Boost Bitcoin Economy

Participating in Babylon’s funding round were Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures.

Using this fresh money, the platform seeks to fulfill its goal of creating a distributed economy based on Bitcoin security. It lets several proof-of-stake (PoS) systems—such as PoS chains, layer-2 solutions, data availability layers, and oracles—use Bitcoin as a staking asset.

PoS systems can improve their crypto-economic security well beyond what native tokens provide by applying Babylon’s modular design and cutting capability.

Babylon claims that this strategy might release wealth from the over $1 trillion Bitcoin ecosystem, therefore lowering inflation pressure on PoS chains and boosting financial value for Bitcoin owners. Co-founder of Babylon, David Tse, voiced his enthusiasm about the funding.

“We are delighted by the confidence Paradigm, Bullish Capital, Polychain Capital, and other investors display,” he stated. “This money will hasten our goal of having Bitcoin as the security pillar for PoS systems.”

Paradigm’s Role in Crypto Fundraising

The role Paradigm plays in the fundraising is noteworthy. Involved in the crypto investment scene actively is the research-driven technology investment firm. Bloomberg earlier this year highlighted Paradigm’s key involvement in a sizable investment for Merkle Manufactory, the Farcaster network’s developer.

Valued at about $1 billion, Farcaster raised $150 million with Paradigm at the top, along with A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto, and others. Aiming for up to $850 million as the digital asset market recovers, Paradigm also revealed intentions to raise more money for crypto investments in April.

Following Paradigm’s $2.5 billion crypto fund acquisition in 2021—a record at the time until Andreessen Horowitz’s $4.5 billion crypto-investment fund in May 2022—this is Paradigm’s greatest fundraise since 2021. Reflecting the revived enthusiasm in the cryptocurrency industry, other venture capitalists, including a16z, Hack VC, and Hivemind, are also actively fundraising, with sums ranging from $50 million to $150 million.