Binance Labs, the venture capital arm of Binance, has invested in Babylon, a Bitcoin (BTC) staking protocol.
What is Babylon?
Babylon is a protocol that allows users to stake their Bitcoins for proof-of-stake (PoS) blockchains. This means that Bitcoin holders can earn rewards without having to give up custody of their coins.
Babylon is built on Cosmos (ATOM) and acts as a middleman between proof-of-work (PoW) and PoS blockchains.
Benefits of Babylon
Babylon provides several benefits, including:
- Allows PoS chains to acquire staking capital from Bitcoin, reducing inflationary pressure.
- Unlocks new utility for BTC, which has historically been used as a store of value.
- Provides economic security guarantees to PoS chains.
Binance’s Investment
Binance Labs’ investment in Babylon demonstrates the company’s commitment to supporting innovative projects that integrate Bitcoin with the PoS economy.
“Bitcoin staking introduces a crucial new use case for the industry,” said Yi He, Co-Founder of Binance and Head of Binance Labs. “Our investment in Babylon represents our commitment to supporting projects that advance the use cases of Bitcoin.”
