Bitcoin staking protocol Babylon has successfully raised million in a funding round led by venture firm Paradigm. 

Babylon’s investment round included participation from Bullish Capital, Polychain Capital, Hashkey Capital, Mantle, Galaxy, Hack VC, ViaBTC Capital, Amber, and HTX Ventures.

The platform aims to use this fresh capital to drive its mission of establishing a Bitcoin-secured decentralized economy. It allows various proof-of-stake (PoS) systems, such as PoS chains, layer-2 solutions, data availability layers, and oracles, to use Bitcoin as a staking asset. 

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

According to Babylon, this approach could unlock value from the over trillion Bitcoin ecosystem, significantly reducing inflation pressure on PoS chains while increasing financial utility for Bitcoin holders.

David Tse, co-founder of Babylon, expressed his 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 growing footprint in crypto funding

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

Earlier this year, Bloomberg reported Paradigm’s leading role in a significant funding round for Merkle Manufactory, the company behind the Farcaster network. 

Valued at approximately billion, Farcaster raised 0 million with Paradigm at the helm, alongside A16z Crypto, Haun Ventures, USV, Variant, Standard Crypto, and others.

In April, Paradigm also announced plans to raise new funds for crypto investments, aiming for up to 0 million as the digital asset industry continues to rebound.

This would mark Paradigm’s largest fundraise since 2021, when the firm secured .5 billion for a crypto fund, a record at the time until surpassed by Andreessen Horowitz’s .5 billion crypto-investment fund in May 2022.

Other venture capitalists, including a16z, Hack VC, and Hivemind, are similarly engaging in fundraising activities, with amounts ranging from million to 0 million, reflecting the renewed momentum in the cryptocurrency sector.