NEW YORK – Babylon, a prominent Bitcoin (BTC) project, has officially launched its Layer 1 blockchain, "Genesis," marking a significant advancement in its Bitcoin staking protocol. The launch follows an accumulation of over 57,000 BTC, valued at more than $4 billion, in Total Value Locked (TVL) since its inception in August 2024. This development aims to enable Bitcoin holders to earn yield on their assets while bolstering the security and liquidity of various proof-of-stake (PoS) networks.
The Genesis blockchain is designed to serve as a BTC staking network, leveraging Bitcoin's inherent security through staking and timestamping mechanisms. This initiative seeks to integrate Bitcoin, traditionally viewed primarily as a store of value, into the broader crypto ecosystem by allowing it to actively secure other decentralized applications. Rewards for staking will be equally distributed, with 50% allocated to BTC stakers and 50% to stakers of BABY, Genesis's native token.
Babylon's approach addresses the long-standing absence of native staking opportunities within the Bitcoin network. The protocol allows users to maintain self-custody of their BTC while participating in securing PoS chains, offering a trust-minimized method for yield generation. This is achieved without the need for wrapped tokens or custodial bridges, enhancing the utility and economic potential of Bitcoin.
The project has garnered substantial investor confidence, securing an $8 million seed funding round in March 2023, followed by an $18 million Series A co-led by Polychain Capital and Hack VC in late 2023. An additional $70 million funding round led by Paradigm coincided with its testnet launch in 2024. Integrations with major platforms like Kraken, Binance, and BitGo further underscore the growing institutional interest in Babylon's Bitcoin-native decentralized finance protocols.
Babylon Genesis, built on the Cosmos SDK, is positioned as the world's first Layer 1 blockchain directly secured by Bitcoin. This innovation transforms Bitcoin from a passive asset into a dynamic cornerstone for PoS security and liquidity, unlocking new use cases for the cryptocurrency. The protocol's phased rollout, with Genesis representing the second stage, aims to establish Bitcoin as a foundational element for a more interconnected and secure multi-chain future.