Babylon

Babylon is a Bitcoin staking protocol that lets holders lock their BTC to secure proof-of-stake blockchains and earn rewards without bridging, wrapping, or moving Bitcoin off the network. It enables staking directly on the Bitcoin blockchain without relying on cross-chain bridges or smart contracts. Bitcoin stays in your wallet the entire time. You just point its security at another network.

The problem Babylon solves is fundamental to the proof-of-stake ecosystem. Newer blockchains need large amounts of staked capital to stay secure, but building that base from scratch using inflationary tokens is expensive and slow. PoS chains are secured by capital from native tokens, which can be costly for emerging chains since high inflation rates are needed to pay high staking yields. Babylon routes Bitcoin, the most liquid and trusted digital asset, directly into that security role.

Babylon achieves this by generating Extractable One-Time Signatures, single-use signatures that create spendable Bitcoin transactions linked to a Babylon node. If a node behaves dishonestly, the signature triggers and part of the staked BTC is slashed as a penalty. Think of it as a security deposit that burns itself if someone cheats.

Babylon is led by co-founder David Tse, a Stanford University engineering professor previously known for his research on information theory at the University of California, Berkeley. Co-founder Fisher Yu also contributed foundational work to the protocol’s cryptographic architecture.

In 2024, Babylon’s Phase-1 mainnet went live with three staking caps. The first cap, limited to 1,000 BTC, filled in 74 minutes. Cap 2 attracted nearly 23,000 BTC from 12,590 stakers. Cap 3 brought in 33,399 BTC from 109,980 stakers. An anonymous staker deposited 10,000 BTC in three transactions during Cap 3, signaling institutional-scale interest.

On April 10, 2025, Babylon launched its first Bitcoin Secured Network, the Babylon Chain, enabling BTC stakers to earn additional yield in the form of BABY tokens while contributing to the network’s shared security. This marked the completion of Phase-2 and the transition from a pure staking protocol into a live blockchain secured by Bitcoin.

The ecosystem around Babylon grew rapidly in 2024. Over 250 finality providers including P2P, Galaxy Digital, and InfStones joined the protocol. Twelve major Web3 wallets including OKX and Binance integrated BTC staking. Institutional custodians like Anchorage Digital and Hex Trust enabled large stakeholders to stake BTC. Twelve liquid staking token protocols including Lombard Finance and pumpBTC let users unlock liquidity while keeping BTC staked.

Babylon raised $18 million in a Series A round co-led by Polychain Capital and Hack VC, with participation from Framework Ventures, Polygon Ventures, Castle Island Ventures, OKX Ventures, and Symbolic Capital. In May 2024, Babylon secured $70 million in additional funding led by Paradigm, with significant contributions from Bullish Capital and Polychain Capital. Paradigm leading a $70 million round into a Bitcoin-specific infrastructure play signals that the market’s most research-oriented crypto fund sees Bitcoin staking as a structural shift, not a passing trend.

BABY is the native token of Babylon Chain, launched at the Token Generation Event in April 2025. It serves three core functions in the ecosystem. BTC stakers earn BABY as rewards for delegating their Bitcoin security to Babylon Chain validators. Validators and finality providers use BABY to participate in the consensus layer of the Babylon Chain itself. BABY holders participate in governance over protocol parameters and the direction of the Bitcoin Secured Network marketplace. Every new network that integrates Babylon as its security provider increases demand for BABY, directly linking token value to ecosystem growth.

BABY is accessible on centralized cryptocurrency exchanges for standard purchases. For larger positions, locked token allocations, or SAFT notes, Acquire.Fi’s OTC and Secondaries Marketplace connects you with verified counterparties outside the open market.

You can buy Babylon tokens OTC on Acquire.Fi by reviewing active sell listings or submitting a Buy listing with your target price and token quantity.

You can also sell Babylon tokens OTC on Acquire.Fi if you hold a position and want to exit. Browse existing Buy listings for a match or submit a Sell listing with your terms.

Acquire.Fi takes it from there. The team runs background checks, issues non-disclosure agreements, and introduces both parties directly. Due diligence and payment settlement are your responsibility, but Acquire.Fi stays involved throughout to help both sides reach a successful close.