Babylon raises $70 million, attracting largest Bitcoin investment in recent history

Key points:

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

The largest recent Bitcoin investment was in cryptocurrency startup Babylon, which raised $70 million. The funds will be used to build a bridge between Bitcoin and Ethereum.

Cryptocurrency startup Babylon recently raised $70 million in a funding round led 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, to which Polychain and Bullish Capital also contributed, will be used to expand staff and further research and development.

Largest recent Bitcoin investment

With a recent resurgence of interest in Bitcoin projects, the company’s success shows that investors and users are increasingly interested in building the Bitcoin ecosystem. In an interview, David Tse said that Bitcoin is experiencing a renaissance and a new wave of projects based on it.

Interest in Bitcoin has increased recently due to the approval and launch of a Bitcoin exchange-traded fund (ETF) in the United States and the Bitcoin ‘halving’ event in April.

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

Staking is the mechanism that runs Ethereum and other proof-of-stake blockchains, and Babylon wants to allow Bitcoin holders to earn money from their Bitcoin by participating in validating transactions on the proof-of-stake network. David Tse added that their project is sort of like Ethereum staking, but for Bitcoin.

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Staking Rises in the Digital Asset Industry

The incentive to make Bitcoin a staking asset is high, as many Bitcoin holders have wanted to generate income from Bitcoin for a long time. This is especially true after Ethereum revamped its network to a more energy-efficient proof-of-stake setup.

Tse focused his vision on the security of cryptocurrency web3 and called for Bitcoin to take over the security layer of the entire Web3 ecosystem.

Staking is currently one of the most lucrative sectors in the digital asset industry, with users sending over $50 billion worth of cryptocurrency to the top two staking projects, Lido Finance and EigenLayer, to generate income.

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