Bitcoin-focused project Babylon raised $18 million in an investment round led by Polychain Capital and Hack VC.
Babylon is a marketplace offering bitcoin (BTC) as a staking asset, allowing proof-of-stake chains to acquire funding from the swells of capital stored in the largest cryptocurrency. Babylon will use the funds to advance the development of the staking protocol, according to an emailed statement shared with CoinDesk on Thursday.
The aim of the project is "to build a Bitcoin-secured decentralized world" by converting all 21 million BTC that will ultimately exist into a decentralized staking asset, Babylon said. Almost 19.6 million bitcoins are currently in circulation.
Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, Finality Capital, Breyer Capital and Symbolic Capital also participated in the fundraise.
Proof-of-stake is a mechanism employed by blockchains whereby validators of transactions are chosen based on how much of a "stake" they have in the network. Staking refers to locking up assets to participate in running a blockchain network and maintaining its security in return for yield.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.