About
BABY
Ended--
Last price (USDT)
415.24K
24h total (USDT)
979.35K
Total vol (USDT)
2025-04-03 13:00:00 ~ 2025-04-10 09:30:00
Trading time (UTC+0)
2025-04-10 11:00:00 ~ 2025-04-10 15:00:00
Delivery time (UTC+0)
Total supply10.44B
Introduction
Babylon is a decentralized protocol that enables native Bitcoin staking directly on the Bitcoin blockchain without intermediaries. The protocol implements a novel shared-security architecture that extends Bitcoin's security model to the broader decentralized ecosystem. Through its architecture, BTC holders can participate in multi-staking operations while maintaining their assets on the Bitcoin network, providing verifiable security guarantees to Bitcoin Secured Networks (BSNs). Babylon Genesis is the first Bitcoin Secured Network (BSN) to leverage Bitcoin's security and serves as the control plane for security and liquidity orchestration for future BSNs. Built on the Cosmos SDK framework, Babylon Genesis introduces key innovations for enhanced PoS security and interoperability, unlocking Bitcoin's potential beyond its traditional role as a store of value.
Data: GMGN Smart Money 24h Net Inflow Ranking, TripleT Tops the List
ChainCatcher News, according to GMGN data, the top 5 tokens with the highest net inflow of smart money in the past 24 hours are as follows: 1. TripleT (J8PS....ump): Net inflow of $7,000, 24-hour price change -23.4%, currently priced at $0.0015. 2. AUTISM (8jiV....ump): Net inflow of $4,000, 24-hour price change -22.6%, currently priced at $0.0031. 3. Punch (NV2R....ump): Net inflow of $3,000, 24-hour price change -11.2%, currently priced at $0.0123. 4. Baby (BEam....ump): Net inflow of $1,000, 24-hour price change 92.1%, currently priced at $0.0004. 5. swarms (74SB....ump): Net inflow of $1,000, 24-hour price change 5.6%, currently priced at $0.0075.
Trump’s universal 401(k) designer explains why those with lower incomes are skeptical of retirement plans: ‘they’re curious about the hidden drawbacks’
Retirement Security in Jeopardy for Many Americans As living costs continue to climb and one of the Social Security trust funds is projected to be depleted by 2032, the prospect of a secure retirement is slipping further away for countless Americans. Recent reports suggest that a comfortable retirement is increasingly unattainable for the majority. New Federal Initiative to Expand Retirement Savings In response to these challenges, the Trump administration has introduced a proposal aimed at providing retirement savings accounts to the 54 million adults in the U.S. who currently lack access to employer-sponsored retirement plans. During the State of the Union address, President Trump outlined this initiative, which economists estimate could enable the lowest-earning 25% of Americans to accumulate between $138,000 and $610,000 for retirement. Lingering Skepticism Among Workers Despite the promise of these new accounts, skepticism remains high among workers who have never had access to retirement savings plans. Teresa Ghilarducci, an economics professor at The New School and a key contributor to the plan, notes that many low-income earners are wary and seek clear explanations, having been excluded from such systems throughout their careers. “Many of the people I speak with want a detailed breakdown of how the program would benefit them, as they have never been part of a system like this,” Ghilarducci, who has spent over four decades studying retirement security, told Fortune. “They’re eager to understand if there’s a hidden downside.” Barriers to Success While the proposed accounts represent a significant move toward greater financial stability for lower-income Americans, several hurdles remain. Past efforts, such as President Obama’s MyRA program launched in 2015, faced obstacles like complicated enrollment processes. Research shows that automatic enrollment can boost participation in retirement plans by 50%. However, despite a relatively simple sign-up process, the Treasury Department closed 30,000 MyRA accounts after two years, citing inefficiency and high costs. Ghilarducci emphasizes that such distrust is understandable. “For about a third of workers, keeping their savings in cash at home may be safer than using an IRA, due to monthly fees,” she explains. Key Differences in the New Proposal Although Ghilarducci advocates for automatic enrollment for all eligible workers—a feature not currently included in Trump’s plan—she highlights a crucial distinction: the new program offers a government match of up to $1,000 per year, providing a strong incentive for participation. “When low-income individuals receive a direct match and can visibly watch their savings grow, participation rates increase dramatically,” she says. Are the Savings Sufficient? According to a survey of 1,000 voters, Americans believe they need an average of $2.1 million to retire comfortably. Yet, as of the third quarter of 2025, the typical 401(k) balance stood at just $144,400—less than 7% of the perceived requirement, according to Fidelity Investments. “Almost no one is close” to reaching that goal, BlackRock CEO Larry Fink wrote in a letter to shareholders. Systemic Challenges Remain Ghilarducci, herself a member of the Baby Boomer generation, has witnessed firsthand the shortcomings of the retirement system. “I truly believed we’d see more robust private sector plans and higher Social Security benefits by the time I retired, but the system has only deteriorated,” she reflects. Data from the Economic Innovation Group shows that 78.7% of full-time workers in the lowest income bracket lack access to retirement plans, compared to just 18.2% among the highest earners. She argues that a $1,000 annual match may not be enough for low-income workers and hopes Congress will consider increasing the matching contribution. “This structure gives workers the best opportunity to start saving early and leave their money untouched, allowing compound interest to significantly boost their savings over time,” Ghilarducci explains. This article was originally published on Fortune.com.
Why Compass and Rocket claim their collaboration is the solution to soaring housing costs
Compass and Rocket Join Forces to Tackle Housing Market Challenges Compass (COMP), a leading real estate brokerage, and Rocket (RKT), a major player in the mortgage industry, are collaborating in hopes of addressing the ongoing housing market crisis. “Solving the issue of home affordability requires a multifaceted approach,” Rocket CEO Varun Krishna explained to Yahoo Finance’s Opening Bid. “Sellers are the key to increasing available homes, and we need to encourage more listings.” A Strategic Partnership to Increase Inventory Their three-year alliance aims to ease the challenges of limited housing supply and high transaction expenses. Through this partnership, Compass’s “Private Exclusives” and “Coming Soon” listings will be featured directly on Rocket’s Redfin platform. The companies anticipate this could introduce up to 500,000 additional homes to the market, offering relief to buyers who have long faced fierce competition for limited options. Krishna emphasized that expanding listings on the platform empowers sellers and lowers entry barriers for buyers, a move that could especially benefit younger generations struggling with rising home prices. Generational Struggles with Housing Costs A recent survey found that 67% of Gen Z participants have difficulty affording housing. This challenge also affects 53% of millennials and Gen Xers, while only 36% of Baby Boomers report similar struggles. Market Impact and Investor Response Although the partnership is presented as a consumer-focused solution, its underlying goal is to capture greater market share. Investors have already responded: Rocket’s stock has surged about 40% over the past year, while Compass shares have seen a more modest 10% increase. Wall Street’s Perspective Financial analysts are taking notice. Eric Hagen of BTIG recently named Rocket his top pick for capitalizing on a potential uptick in housing activity, highlighting the company’s advanced technology as a key advantage. “We’re particularly optimistic about management’s forecast of $500 million in synergies from the COOP merger, which are expected to be realized 6-12 months ahead of schedule now that everything is integrated on a single tech platform,” Hagen noted. He also pointed out that Rocket’s direct-to-consumer business maintains industry-leading margins, ensuring strong connections with borrowers—a crucial factor if mortgage rates decline. Hagen suggested Rocket’s stock could rise another 20% should rates drop. Strong Financial Performance Rocket recently reported a robust fourth quarter, with revenue reaching $2.69 billion—a 40% increase from the previous year and well above Bloomberg’s $2.27 billion estimate. Adjusted earnings per share came in at $0.11, slightly exceeding analyst expectations. Photo: Kevin Carter via Getty Images Looking Ahead: Cautious Optimism Despite positive forecasts—including a $25 price target from BTIG—average homebuyers should remain cautious. Much of Rocket’s recent growth stems from operational improvements and the integration of its Mr. Cooper merger, rather than broad changes in the housing market. With $10 billion in liquidity, Rocket has the resources to offer temporary rate discounts to stay competitive. While this partnership may offer some short-term relief for buyers, the fundamental issues of high prices and limited supply are likely to persist for the foreseeable future.
ZEC Price Slides 25%: Why Are Miners and Privacy Users Doubling Down?
Zcash (ZEC) remains under pressure, with the privacy-focused cryptocurrency dropping more than 25% this month amid broader market weakness. However, beneath the surface, some on-chain and mining indicators suggest structural confidence in the network. Zcash Price Falls in Risk-Off Market as On-Chain Data Shows Growing Network Participation ZEC was one of the few assets that initially defied the broader sector-wide downturn in October 2025. According to CryptoRank data, the token surged more than 440% during the month. Although November and December brought heightened volatility, ZEC still closed both months in the green with modest gains. However, 2026 has not been as favorable for the privacy-focused cryptocurrency. A broader risk-off sentiment across financial markets, combined with concerns surrounding the Electric Coin Company (ECC) teams split from Bootstrap, weighed on the asset. ZEC declined more than 41% in January. The coin has extended its downward trajectory into this month. At press time, ZEC was trading at $227.22, down 4.29% over the previous 24 hours. Zcash (ZEC) Price Performance. Despite the sustained price weakness, on-chain data suggests emerging positive signals. After a modest dip in early January, the amount of ZEC held in shielded pools began rising again. At press time, more than 5 million ZEC were held in shielded addresses, accounting for roughly 30% of the coins circulating supply. That means real people are sending shielded tx every single day, even when theres zero profit in it, an analyst wrote. ZEC Held In Shielded Pools. The steady increase in shielded supply suggests sustained user engagement and may reflect continued confidence in Zcashs privacy infrastructure despite short-term market pressure. In addition, Zcash mining difficulty reached an all-time high in early February. Because difficulty adjusts in response to aggregate computational power, the move signals heightened competition among miners and a stronger security profile for the network. An increase in difficulty indicates that additional hash power has joined the network, whether through new participants, expanded industrial operations, or more efficient hardware deployment. While this strengthens network security, it also raises competition, reducing the expected block reward per unit of computing power. The rise in difficulty despite broader market weakness suggests that mining economics remain viable for at least a segment of operators. It's currently exceptionally profitable to mine Zcash with the right hardware.An Antminer Z15 Pro will repay itself in just ~4 months at current returns, not taking electricity into account. This may reflect competitive electricity costs, operational efficiency, strategic positioning, or expectations of future price appreciation. Overall, the data confirms growing network participation and security.
Recently, Baby Boomers have significantly invested in Bitcoin ETFs, purchasing approximately $500 million. Despite this influx, year-to-date net ETF flows remain negative by $1.7 billion, reflecting broader market trends.
Baby Boomer investors purchased $500 million in Bitcoin ETFs this week, according to Bloomberg’s Eric Balchunas, amidst significant year-to-date outflows. The sizeable investment highlights a renewed interest, potentially stabilizing the ETF market amid broader volatility, projecting significant investor confidence. Baby Boomers’ Impact on Bitcoin ETFs The substantial purchase by Baby Boomers occurred as Bitcoin approached highs around $78,000, driving up ETF allocations. This move contrasts with previous outflows, indicating a potential shift in market sentiment. Eric Balchunas, Senior ETF Analyst, Bloomberg Intelligence, remarked: “Baby Boomers made significant investments in Bitcoin ETFs, purchasing half a billion dollars’ worth. Despite this substantial investment, the year-to-date net flows for these ETFs remain slightly negative.” Market Implications and Future Trends The implications for the market include potential stabilizations of ETF performance and possible influence on asset management strategies. However, regulatory frameworks and institutional updates were lacking during this shift. Future market behavior remains uncertain, but increased participation by Baby Boomers might encourage similar trends among other demographics. Monitoring these shifts could reveal broader investor sentiment towards Bitcoin and ETFs. Balchunas’s data suggests that, historically, rapid growth in Bitcoin prices and ETF volumes indicates intense market interest. However, challenges remain with narrative lag and regulation impacting future adoption rates.
Cryptocurrency Trust Survey Reveals Stark Generational Divide: 40% of Younger Americans Embrace Digital Assets vs. 9% of Baby Boomers
A recent survey conducted in the United States has uncovered a profound and revealing generational chasm in financial trust, highlighting that 40% of younger Americans express significant trust in cryptocurrency platforms, a figure that starkly contrasts with the mere 9% of Baby Boomers who share that sentiment. This cryptocurrency trust survey, commissioned by global crypto exchange OKX and reported by Cointelegraph, polled 1,000 Americans and provides critical data for understanding the evolving landscape of financial confidence. The findings suggest a fundamental shift in how different age cohorts perceive security, value, and institutional authority in the digital age. Cryptocurrency Trust Survey Methodology and Core Findings The OKX survey, conducted in early 2025, asked 1,000 American respondents to rate their trust in virtual asset platforms on a 10-point scale. Researchers then analyzed the data through a generational lens, creating two primary cohorts. The first group, comprising Millennials and Gen Z respondents aged 12 to 45, showed a markedly higher propensity to trust crypto. Specifically, 40% of this younger demographic rated their trust at a seven or higher. Conversely, the Baby Boomer cohort, defined as individuals in their late 50s to late 70s, demonstrated deep skepticism. Only 9% provided a similarly high trust score for cryptocurrency platforms. This divergence extends beyond digital assets into views on traditional finance. The survey found that 74% of Baby Boomers maintain high trust in conventional banks and financial institutions. Meanwhile, a significant 20% of the younger generations reported low trust in these same traditional entities. This inverse relationship suggests a broader re-evaluation of financial systems, not merely an isolated interest in new technology. Analysts at OKX propose that these results stem from fundamentally different generational definitions of trust itself. Analyzing the Roots of the Generational Divide in Financial Trust The stark contrast revealed by this cryptocurrency trust survey is not a random occurrence. Instead, it reflects deep-seated historical, economic, and technological experiences that shape each generation’s worldview. For Baby Boomers, financial trust is often intrinsically linked with institutional approval and regulatory oversight. This cohort came of age during a period of strong, centralized financial authorities and long-term economic growth patterns tied to traditional markets. Their experience reinforces a model where trust is derived from government-backed insurance, physical bank buildings, and established regulatory bodies like the FDIC and SEC. In contrast, Millennials and Gen Z have witnessed different formative events. Many entered the workforce during or after the 2008 Global Financial Crisis, an event that eroded faith in traditional banking for millions. Furthermore, this younger demographic are digital natives. They inherently value verifiability and transparency offered by blockchain technology—a public ledger where transactions are recorded and visible. For them, trust can be engineered through code, consensus mechanisms, and cryptographic proof, rather than solely through institutional reputation. Generational Trust Perspectives Comparison Factor Baby Boomer Perspective Millennial/Gen Z Perspective Source of Trust Institutional reputation & regulatory bodies Technological transparency & verifiable code View of Banks High trust (74% in survey) Lower trust (20% report low trust) Defining Financial Events Post-WWII stability, Glass-Steagall era 2008 Financial Crisis, FinTech rise Technology Comfort Adopted digital tools later in life Digital natives, comfortable with apps & APIs Expert Insight on Evolving Financial Paradigms Financial sociologists point to this survey as evidence of a broader paradigm shift. “Trust is migrating from institutions to protocols,” explains Dr. Lena Torres, a professor of economic sociology at Stanford University, whose research focuses on digital asset adoption. “Younger generations aren’t inherently distrustful; they are simply applying a new framework. Where their grandparents saw a bank vault as the symbol of security, they see a cryptographic hash and a decentralized network as equally, if not more, robust.” This shift has tangible implications for financial product development, regulatory policy, and consumer education, necessitating approaches that bridge these divergent trust models. The Real-World Impact of Diverging Trust Models The implications of this generational divide in the cryptocurrency trust survey extend far beyond a simple poll. They influence market dynamics, regulatory discussions, and the future of financial services. For instance, investment product offerings are increasingly bifurcated. Traditional wealth managers serving older clients may emphasize gold, bonds, and blue-chip stocks, while neo-brokers and fintech apps popular with younger investors prominently feature crypto ETFs, tokenized assets, and staking products. This divide also frames the ongoing regulatory debate in the United States. Policymakers, often belonging to older generations themselves, grapple with how to regulate a technology that a significant portion of their younger constituents not only use but fundamentally trust in a different way. The push for clear crypto regulation is, in part, an attempt to create a bridge between the Boomer demand for institutional oversight and the younger generation’s demand for innovation and transparency. Furthermore, this trust gap affects: Retirement Planning: Younger workers are more likely to include digital assets in long-term portfolios. Payment Systems: Adoption of crypto for remittances and payments is generationally skewed. Financial Education: Curricula must now address both traditional and blockchain-based finance. Corporate Strategy: Major brands decide whether to engage with web3 based on target demographics. Conclusion The OKX cryptocurrency trust survey provides a clear, data-driven snapshot of a nation at a financial crossroads. The chasm between the 40% of younger Americans trusting crypto and the 9% of Baby Boomers is more than a statistic; it is a reflection of contrasting life experiences, technological familiarity, and core definitions of security. As digital assets continue to mature and integrate into the global financial system, understanding and addressing this generational divide will be crucial for institutions, innovators, and regulators alike. The future of finance may well depend on building systems that can earn trust across both paradigms—leveraging the stability of tradition while embracing the transparency of innovation. FAQs Q1: What was the main finding of the OKX cryptocurrency trust survey? The primary finding was a stark generational gap: 40% of Millennial and Gen Z Americans (ages 12-45) reported high trust in crypto platforms, compared to only 9% of Baby Boomers (late 50s to late 70s). Q2: How does trust in traditional banks compare between the generations in the survey? The survey found an inverse relationship: 74% of Baby Boomers have high trust in traditional banks, while 20% of the younger generations reported low trust in them. Q3: Why is there such a large generational divide in cryptocurrency trust? Analysts attribute it to different life experiences and definitions of trust. Older generations link trust to institutional approval and regulation, while younger, digital-native generations value the technological verifiability and transparency of blockchain systems. Q4: What real-world impacts does this trust divide have? It influences investment product development, regulatory policy debates, corporate marketing strategies, and the structure of financial education, creating a bifurcated market for financial services. Q5: Does high trust in cryptocurrency mean younger generations distrust all traditional finance? Not necessarily. The survey indicates lower trust in traditional banks specifically, but it reflects a shift in where trust is placed. Many younger investors use a hybrid approach, utilizing both fintech/crypto platforms and certain traditional services.
Ledger Wallet Activates BTC Yield via Lombard, Figment for Self-Custodied Bitcoin
Key Notes Ledger partners with Lombard and Figment to offer BTC yield without sacrificing self-custody or control. LBTC tokens earn rewards by securing Bitcoin-adjacent networks through Babylon's staking infrastructure. The feature targets long-term holders, though current APY sits at just 0.41% according to DefiLlama. Ledger Wallet’s new bitcoin rewards feature lets self-custody bitcoin holders earn yield, integrating BTC into DeFi through Lombard and Figment without relinquishing control or altering Bitcoin’s base layer. Ledger has activated these new features inside its Wallet app. It is initially accessible through the Discover section via a Figment-powered dApp that connects to Lombard’s infrastructure. The company targets long-term holders and active traders seeking additional returns while maintaining control of their assets. Moreover, only about 1.5% of the total BTC is currently active on-chain and unused. With this tool, users deposit bitcoin, which is then converted into LBTC, a liquid token that tracks BTC and is designed to earn staking rewards. Ledger plans to extend the Discover feature to a native slot in the Earn section later in 2026. This would deepen its role as a BTC DeFi access point. Your $BTC shouldn't just sit idle. Unlock rewards through the Ledger Wallet app with via . Through the Figment dApp in Ledger Wallet, BTC holders can access Lombard’s fully backed LBTC and earn rewards while staying fully in control of their assets.… — Ledger (@Ledger) January 14, 2026 How LBTC and Babylon Generate BTC yield The yield feature for Bitcoin BTC $97 430 24h volatility: 3.4% Market cap: $1.95 T Vol. 24h: $77.12 B uses third-party integrations rather than built-in wallet code. Bitcoin deposits result in the token LBTC, which is easier to stake and remains usable in more DeFi tools. LBTC accrues BTC-denominated rewards by helping secure “Bitcoin secured networks” via the Babylon Bitcoin Staking Protocol. Figment is one of the platforms that runs validator infrastructure for this process and connects the different networks. The mechanism does not involve staking on Bitcoin’s base layer, which does not have this function. Instead, it uses BTC as economic collateral for other networks that settle or reference Bitcoin. This process preserves the holder’s underlying BTC exposure. Related article: BTC ETFs Log $753M in Inflows, Short Liquidations Skyrocket According to DefiLlama, Babylon Protocol and Lombard have $5.92 billion and $1.04 billion in TVL, respectively, making them the biggest platforms in Bitcoin DeFi. Making Bitcoin DeFi Easier The Ledger–Lombard–Figment partnership brings BTC holders new earning opportunities in DeFi, signaling an expansion of Bitcoin DeFi amid growing demand for safe, yield-bearing BTC products. Analysts are watching how much BTC this route can attract and how it interacts with DeFi protocol-level risks. Recent attention has focused on Babylon’s consensus bugs and the broader safety of BTC-backed security models. For now, Ledger has not disclosed key risk-related information, such as expected APY, fee schedules, custodial risks, or regional availability details, in its press releases. Investors must weigh the promise of BTC-denominated rewards against the limited public disclosure of these risks. It is worth noting that, LBTC on Lombard reports an APY of 0.41%; this figure may change with different incentives. If more users adopt it, Ledger could drive significant on-chain activity while helping holders maintain ownership of their coins, reinforcing its leadership as a DeFi gateway in an evolving market. next Share:
Crypto VC Funding: Rain secures $250 million, BlackOpal bags $200 million
With $763.5 million in cryptocurrency funding spread across six projects, the first full week of 2026 got off to a great start thanks to Rain’s $250 million Series C round. Summary Rain led the week with a $250M Series C, valuing the stablecoin firm at $1.95B. BlackOpal and Tres Finance together added $330M via funding and M&A activity. Bitcoin infrastructure projects like Babylon and ZenChain also secured new capital. According to Cryptofundraising data, the following summarizes this week’s cryptocurrency funding activity: Rain Raised $250 million in a Series C round Fully diluted valuation of $1.95 billion Rain is a blockchain-based card issuing and stablecoin platform Investment was led by ICONIQ Other investors include Sapphire Ventures, Dragonfly, Bessemer Venture Partners, Galaxy Ventures, FirstMark, Lightspeed, Norwest, and Endeavor Catalyst Total funding exceeds $338 million Comes four months after Series B and ten months after Series A BlackOpal BlackOpal secured $200 million in an unknown round The project is LATAM’s global payments finance platform Investment was backed by Mars Tres Finance Acquired for $130 million through M&A Tres Finance is a crypto accounting and taxation reporting platform Acquired by Fireblocks The project has raised $148.6 million so far Babylon Raised $15 million in an Unknown round Backed by AI6Z Babylon is a Bitcoin staking infrastructure project The project has raised $103 million so far HabitTrade Secured $10 million in a Series A round Investors include Newborn Town and StableStock HabitTrade is a financial services platform ZenChain Raised $8.5 million in an unknown round ZenChain is an EVM-compatible Bitcoin Layer 1 Backed by Watermelon, DWF Labs, and Genesis Capital
Babylon Bug Exposes Consensus Risks in Bitcoin Staking
Babylon vote extension bug let validators omit data, crashing peers at epoch boundaries. Flaw stressed off-chain consensus logic, slowing blocks without breaking cryptography. Babylon patched the bug in v4.2.0 as BTCFi growth raises network reliability stakes. A disclosed software flaw in Babylon’s Bitcoin staking protocol revealed how validator behavior could disrupt consensus and slow blocks. The issue surfaced through a GitHub post on December 8, 2025, from contributor GrumpyLaurie55348. The bug affects Babylon’s BLS vote extension and shows how omitted data during voting can crash validators at epoch boundaries. How the Babylon Vote Extension Flaw Works The vulnerability is inside Babylon’s block signature system, known as the BLS vote extension. This mechanism proves that validators agreed on a proposed block during consensus. Under normal conditions, validators include a block hash field identifying the exact block they support. However, the bug allows validators to omit that block hash field when submitting vote extensions. Because protobuf fields remain optional, the network accepts these incomplete messages. When Babylon later processes the vote, it attempts to access missing data and encounters a nil pointer. That dereference triggers a runtime panic during consensus checks. Notably, affected code paths include VerifyVoteExtension and proposal-time vote verification. As a result, validators can crash at specific checkpoints instead of rejecting the faulty vote cleanly. The timing of those crashes matters. Epoch boundaries require coordinated agreement across validators. Therefore, crashes during these transitions delay the creation of epoch boundary blocks and slow block production. Validator Disruption and Consensus Stress Points The flaw creates a path for malicious validators to disrupt peers without breaking cryptography. Instead, they exploit input handling. By submitting vote extensions without block hashes, a single actor can trigger failures elsewhere. According to GrumpyLaurie55348, intermittent crashes appear during epoch boundaries. These moments anchor validator state transitions. Consequently, any instability during those checks affects the broader consensus flow. Developers confirmed no active exploitation has occurred. However, they warned that misuse remains possible if operators delay upgrades. The advisory classifies the issue as high severity due to its consensus impact. Babylon addressed the flaw in version 4.2.0. The patch adds stricter validation around vote extensions. Still, as of publication, Babylon has not issued a public statement on validator upgrade timelines. This episode shows how consensus logic extends beyond Bitcoin’s base layer in staking frameworks. Babylon relies on off-chain coordination to prove validator agreement. Therefore, flaws in that layer can influence on-chain outcomes without touching Bitcoin itself. Related: Cambodia Extradites Chen Zhi to China in Cryptocurrency Scam Context Within Babylon’s Expanding BTCFi Role The disclosure arrived as Babylon expanded its role in Bitcoin-based decentralized finance, known as BTCFi. Babylon introduced Bitcoin-native staking, allowing yield generation without moving assets off Bitcoin. That design relies on verifiable off-chain consensus checks. On January 7, Babylon disclosed a $15 million investment from a16z Crypto. The funding followed a BABY token sale to Andreessen Horowitz’s digital asset arm. A16z stated that the capital supports Bitcoin-native DeFi infrastructure. Earlier funding rounds raised Babylon’s disclosed total to $103 million. Those rounds included an $18 million Series A and a $70 million strategic round led by Paradigm. The protocol also partnered with Aave Labs in December 2025. That partnership aims to enable Bitcoin-backed lending on Aave v4 without wrappers or custodians. Testing is scheduled for the first quarter of 2026, with an April 2026 launch target. The integration relies on Babylon’s Bitcoin Vault design. Meanwhile, Babylon controls over 80% of the total value locked in BTCFi. Network reliability, therefore, carries ecosystem-wide consequences. In 2024, Bitcoin DeFi TVL rose from $307 million to over $6.5 billion. The Babylon bug illustrates how staking frameworks extend consensus logic beyond Bitcoin’s base layer. As adoption grows, developers increasingly face adversarial testing conditions. The incident shows how optional fields and edge cases can influence consensus-critical paths. Babylon’s fix closes the immediate vulnerability. However, the disclosure places attention on how off-chain consensus extensions interact with Bitcoin’s security model. Meanwhile, the Babylon vulnerability exposed a flaw in vote extension handling that could crash validators during epoch transitions. The issue affected block production timing but showed no active exploitation. Developers patched the bug in version 4.2.0, while the protocol continues expanding within Bitcoin-based decentralized finance.
a16z says the next phase of cryptocurrencies focuses on infrastructure and real-world impact.
a16z sees cryptocurrencies as more than just new blockchains Infrastructure defines crypto's competitive advantage in 2026. Markets, computing, and media gain prominence. a16z crypto, the cryptocurrency division of Andreessen Horowitz, believes that the next phase of the sector will be marked less by the launch of new blockchains and more by the technology's ability to influence markets, computing infrastructure, and digital media. This analysis is part of the company's 2026 thesis, which prioritizes practical utility and integration with existing systems. Cryptocurrency-native tools are advancing into areas beyond decentralized finance. This movement is driven by improvements in cryptography, artificial intelligence, and market design, allowing blockchains to function as foundational infrastructure, not just isolated environments for financial applications. One of the highlights of the report is the prediction markets, which are expected to gain scale and sophistication throughout 2026. The combination of cryptocurrencies and artificial intelligence tends to broaden the reach of these markets, which have already ceased to be restricted experiments and have become relevant sources of aggregated information. Related Stories A16z Crypto invests $15 million in Babylon for BTCVaults 07/01/2026 A16z expands its presence in Asia with a new office in South Korea. 11/12/2025 For a16z, the next step involves improving dispute resolution mechanisms, especially in political and geopolitical events. Centralized models face limitations as volume grows, opening space for decentralized structures and the use of AI-powered oracles capable of delivering more transparent results. Another key point highlighted is the expansion of cryptographic proofs beyond the blockchain. Advances in zero-knowledge virtual machines are significantly reducing the cost of generating these proofs, making verifiable computing viable in cloud environments and, gradually, in consumer devices. This advancement could unlock applications that have been discussed for years, such as verifiable cloud computing. In this model, companies can obtain cryptographic guarantees that calculations were executed correctly, without the need to redo them internally, increasing efficiency and trust in digital systems. The report also addresses the rise of so-called "staking media." In this format, creators and analysts use tokenized assets, programmable locks, and on-chain ledgers to make verifiable public commitments, aligning incentives between those who produce content and those who consume information. With the spread of AI-generated content and reduced production costs, a16z sees these cryptographic commitments as a new sign of credibility. The proposal does not replace traditional journalism, but adds transparency by allowing reputation and capital to be exposed in an auditable way. This vision connects to previous predictions from a16z crypto, which point to infrastructure and privacy as central factors for the competitiveness of cryptocurrency networks in the coming years, shifting the sector's focus to concrete and measurable applications. Tags: a16z
The death of crypto marketing: Why founders became the product interface | Opinion
For most of crypto’s short history, growth followed a simple formula: reward behavior, and it will repeat. Liquidity mining, referral loops, token launches, airdrops. If adoption slowed, teams increased the incentives. When that stopped working, they layered on marketing campaigns, splashy announcements, and logo-filled partnership decks. That era is over. Summary Crypto growth stalled because trust collapsed: incentives, airdrops, and marketing no longer convert in a market saturated with scams, fake metrics, and empty signals. Founder credibility has become the growth engine: consistent, public explanation builds compounding trust, defines the narrative, and creates adoption that campaigns can’t buy. Founders are now infrastructure: belief, coherence, and conviction are the real distribution layer — and when trust is scarce, credibility becomes the product. Crypto didn’t stall because people forgot how to market. It stalled because the industry had exhausted trust. In a market where scams surface daily, rug pulls are routine, and metrics can be manufactured, buyers stopped believing what they were being shown. The result is uncomfortable but obvious: attention no longer converts. The marginal return on spend is collapsing because none of these mechanisms answer the real question buyers are asking anymore: who can I trust? When trust disappears, growth doesn’t follow money. It follows credibility. This is why a new system has quietly replaced traditional crypto marketing: founder-credibility driven growth. In this model, the primary driver of adoption is not rewards, spend, or partnerships. It is the founder’s ability to consistently earn trust by explaining, teaching, and embodying the product in public. But this isn’t just personal branding. It’s something more structural. Markets no longer discover products through landing pages. They discover them through people who show up repeatedly with the same worldview, the same logic, and the same intellectual posture. Buyers don’t want dashboards. They want explanations they can repeat internally. They want mental models they can borrow when convincing teams that don’t live on crypto Twitter. This is also why campaigns and fake logo partnerships are dead. They once worked because the market was naïve, but all they signal today is performance rather than any substance. A press release filled with logos doesn’t signal legitimacy anymore — it signals theatre. In a trust-depleted market, anything that feels manufactured is discounted instantly. Founder-credibility-driven growth model Founder-credibility-driven growth flips the old model on its head. I’ve watched this pattern repeat across dozens of teams. Products with strong technology but weak founder presence struggled to move beyond early adopters, even with serious budgets. Meanwhile, other products — sometimes technically simpler — pulled in disproportionate inbound interest because the founder kept explaining the same problem in the same way until the market finally understood it. The difference? Coherence. A campaign can generate awareness. It cannot generate conviction. Founder-credibility-driven growth works because it performs three functions that incentives never could. First, it compounds. Campaigns are episodic. They flare up and vanish. Founder narratives accumulate. Every explanation builds context for the next. Over time, the market doesn’t just recognize the product — it understands it. Second, founder-driven growth creates defensibility. Institutions don’t adopt things they can’t explain. Founders who teach the market how to think about a problem don’t just promote products — they define the language people use to justify decisions internally. Third, this type of growth creates trust asymmetry. In a market saturated with noise, the person who keeps showing up with clarity becomes the reference point everyone else measures against. This shift is uncomfortable because it changes who owns growth. Go-to-market is no longer something you can fully outsource. You can pay for campaigns. You cannot pay for belief. Vision, philosophy, and conviction are non-transferable. The market doesn’t want a spokesperson. It wants the person who made the trade-offs. You can hire someone to write your announcements. You cannot hire someone to embody your worldview. That is why founders have quietly become infrastructure. They are no longer just builders. They are the distribution layer through which markets learn how to adopt increasingly complex financial systems. Crypto marketing isn’t dying because teams stopped trying. It’s dying because the interface changed. And in a space saturated with scams, empty partnerships, and decaying incentives, the only growth engine that still works is authentic, founder-credibility-driven trust. When trust becomes scarce, credibility becomes the product. Dean Khan Dhillon Dean Khan Dhillon is the Head of Growth at RWA.xyz, a data analytics platform focused on tokenised assets. He specializes in RWA adoption, crypto market structure, and GTM for crypto infrastructure. Previously, Dean was CEO of fortyIQ, a crypto GTM and thought leadership firm, which he scaled to $2M ARR in under a year, and worked with over 25+ leading blockchain protocols such as Babylon, Initia, and Syndicate.
Bitcoin Staking Protocol Babylon at Risk of Slow Block Production, Here Is Why
Bitcoin BTC $90 324 24h volatility: 0.5% Market cap: $1.80 T Vol. 24h: $42.51 B staking protocol Babylon is facing scrutiny after developers disclosed a flaw that could disrupt consensus and slow block production. The issue affects how validators confirm blocks and may trigger crashes at key network moments if abused. How the Bug Puts Bitcoin Staking Protocol Babylon at Risk According to a GitHub post, the disclosed issue affects Babylon’s BLS vote extension, a system used by validators to confirm agreement on new blocks. Developers explained that a validator can submit a vote without including the required block hash field. This hash identifies which block is being approved. When the hash is missing, other validators may fail while checking the vote. It is worth stating that the problem appears during epoch boundaries, periods when the network shifts between validation cycles and runs strict consensus checks. At that moment, the software attempts to read missing data and can crash. The flaw was shared in a public GitHub post by a contributor who noted that the crash happens inside core consensus functions, including vote verification. If several validators are affected at the same time, block production may slow because fewer validators remain active to confirm blocks. Developers said the bug has not been actively exploited but warned it could be abused if left unresolved. Babylon had not responded publicly with a fix at the time of reporting. Why the Issue Matters as Babylon Expands Babylon is a Bitcoin staking platform positioned as an important project in BTC-based decentralized finance. It offers native Bitcoin staking, allowing holders to earn yield without moving their funds to other chains. Babylon Staking recently received $15 million in funding from a16z Crypto through the sale of its BABY token. The funding is meant to support further development of Bitcoin-native DeFi tools. In December, Babylon also partnered with Aave Labs AAVE $164.3 24h volatility: 0.7% Market cap: $2.49 B Vol. 24h: $228.72 M to bring Bitcoin-backed lending to Aave v4. The product is expected to enter testing this year, with a planned launch in April. More importantly, as Babylon grows its role in Bitcoin DeFi, developers say fixing consensus risks like this one is critical to keeping block production stable and trust intact. next Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites. Share:
Babylon contributor discloses vulnerability in BLS voting extension mechanism, affecting versions prior to 4.2.0
Foresight News reported that, according to a Babylon GitHub post, contributor @GrumpyLaurie55348 disclosed on December 9, 2025, that there is a vulnerability in Babylon's BLS voting extension handling mechanism, which could allow malicious validators to cause disruptions during the network consensus process. Attackers could deliberately omit the block hash field when sending blocks, causing other validators to crash at the network epoch boundary, thereby slowing down block production. The severity of this vulnerability has been rated as high, affecting versions prior to 4.2.0. Currently, there have been no user reports of this vulnerability being exploited.
A vulnerability found in Babylon's staking code may slow down block generation speed
PANews, January 9 — According to Cointelegraph, developers stated in a post on GitHub on Thursday that a newly disclosed software vulnerability in the bitcoin staking protocol Babylon could allow malicious validators to disrupt part of the network's consensus process, potentially slowing down block production during critical periods. This vulnerability affects Babylon's block signature scheme, specifically the BLS voting extension scheme, which is used to prove that validators have reached consensus on a particular block. The vulnerability allows malicious validators to intentionally omit the block hash field when sending voting extensions, which could lead to validator consensus issues during network epoch boundaries. The block hash field is used to inform validators which blocks they are actually voting for during the consensus process, and this vulnerability allows this field to be omitted. In theory, through this vulnerability, malicious validators could cause other validators to crash during critical consensus checks at phase boundaries, and if multiple validators are affected, it would result in a slowdown of block production. There have been no reports of this vulnerability being actively exploited so far, but developers warn that if left unaddressed, it could be abused.
Babylon Raises $15M From a16z to Expand Bitcoin’s Role in Onchain Finance
Quick Breakdown Babylon raised $15M from a16z Crypto to expand beyond Bitcoin staking into lending and DeFi infrastructure Trustless BTCVaults aim to unlock idle Bitcoin without bridges, wrappers, or custodians Upcoming Aave V4 integration could bring native Bitcoin collateral to major DeFi markets by 2026. Babylon is accelerating its push to make Bitcoin more than a passive store of value, securing fresh backing as it moves beyond staking into native Bitcoin-based lending and decentralized finance. Today we’re sharing a major milestone for Babylon.@a16zcrypto is backing the Babylon Project with $15M to support the development and scaling of Babylon’s new protocol Trustless Bitcoin Vaults. The BTCVaults are designed to provide new, functional utility for the BABY token… pic.twitter.com/Ze38m7EJkt — Babylon (@babylonlabs_io) January 7, 2026 The Bitcoin-focused protocol has raised $15 million from a16z Crypto, with the venture firm purchasing Babylon’s native BABY tokens, according to a December 7 announcement. The investment signals growing institutional interest in infrastructure that allows Bitcoin to function as productive onchain capital without sacrificing its core security principles. a16z backs Babylon’s native Bitcoin thesis Babylon was originally designed as a Bitcoin staking platform, enabling BTC holders to earn yield without bridging or wrapping their assets. The protocol is now expanding into lending through Trustless BTCVaults, a system that allows Bitcoin to serve as verifiable onchain collateral while remaining on the Bitcoin network. The architecture avoids custodians, bridges, and synthetic tokens, instead relying on advanced cryptographic tools such as witness encryption and garbled circuits. According to a16z, this design offers a more neutral and trust-minimized alternative to wrapped Bitcoin products, which currently dominate DeFi but introduce counterparty risk. With Bitcoin’s market value exceeding $1.4 trillion, Babylon’s long-term goal is to unlock idle BTC for use in lending, credit markets, and other capital-efficient applications without weakening Bitcoin’s security model. Babylon was founded by Stanford professor David Tse alongside Fisher Yu. a16z highlighted Tse’s extensive academic background and influence within the crypto research community as a key factor behind its investment decision. From staking demand to Bitcoin-native lending Babylon’s staking product has already demonstrated strong traction. Previous staking phases attracted over $2 billion in total value locked, with participation from institutional custodians like BitGo and exchange partners Kraken. More recently, the project has shifted its focus toward BTCVaults, positioning itself as foundational infrastructure for native Bitcoin lending. That transition gained further momentum after Aave announced plans to integrate native Bitcoin as collateral on Aave V4. The proposed integration would introduce Aave’s first Bitcoin-backed “Spoke,” allowing users to borrow and lend against BTC without converting it into ERC-20 tokens. The launch is expected around April 2026, potentially opening new DeFi markets anchored directly to Bitcoin’s base layer.
Elliott Wave Specialist Reveals Why an XRP Run to $20 Remains Possible
Back to the list Elliott Wave Specialist Reveals Why an XRP Run to $20 Remains Possible thecryptobasic.com 7 m Amid the ongoing recovery effort from XRP, a prominent market analyst and Elliott Wave specialist has revealed why he believes a rally to $20 remains possible. For context, XRP opened 2026 with an impressive comeback, having surged 22.59% during the first seven days of the year. This comes after the downtrend in Q4 2025 resulted in a 35% collapse, pushing XRP below the pivotal $2 level. The latest bullish flip, which recovered the $2 mark, has revived discussions about how high XRP could climb in this cycle. Amid the discussions, XForceGlobal, a South Korean Elliott Wave specialist, recently shared his opinion. XRP Has Held Near ATHs for First Time in History He asked investors not to dismiss the idea of $5 or even $20 during this cycle. The market analyst said his outlook comes from studying price movement daily and linking each move to the larger Elliott Wave map. According to him, the broader picture shows that XRP now trades in an unusually tight range that goes against what traders have seen throughout its price history. He explained that this range helped the market set a new price floor that currently holds firm. Specifically, this floor rests around the $2 level. XForceGlobal believes this floor is now undergoing a test phase that should either confirm or reject it. He then mentioned earlier cycle peaks in 2018 and 2022, where XRP rallied and then quickly lost ground. According to him, the token did not repeat this pattern after its late-2024 surge. Notably, XRP held strong levels after the November 2024 run for a full year and did so fairly close to previous all-time highs. XForceGlobal believes this is a sign of strength in the market. What Corrective Structure is XRP Currently Witnessing? Speaking further, the analyst then highlighted the main corrective structures in Elliott Wave theory. Notably, he said markets usually move through zigzags, flats, or triangles when they pause before the next trend. Corrective Wave Structures For context, zigzags slope against momentum, triangles compress inside narrowing levels, and flats hold inside a steady zone. Considering this, XForceGlobal ruled out the possibility that XRP’s current corrective structure is a triangle, suggesting that it instead resembles a flat pattern. According to him, flat structures themselves come in different forms. The standard version looks straightforward, but expanded and running flats create fake swings that trick traders. He said XRP already pushed above a previous high, which leaves two choices: expanded flat or running flat. To him, the more likely option is the running flat, which keeps the previous low intact without breaking support. He called this trend a fake-out inside another fake-out that usually ends with a strong breakout in the direction of the main trend. XRP 1W Chart | XForceGlobal Possible Targets as XRP Nearly Done with Current Correction The analyst explained that the flat pattern includes three moves down, three moves up, and a final five-wave leg. He believes XRP already completed that five-wave decline during the 35% collapse in Q4 2025, which would mean the correction ended. However, XForceGlobal admitted that one last dip could still happen, and a drop to the $1.30 to $1.50 area remains on the table. Despite this, evidence seems to suggest the correction may have run its course. He said the market’s latest leg higher looks like an impulsive move, not a corrective bounce, which usually marks the start of a new upward trend. XRP 4h Chart | XForceGlobal With that context, he believes XRP already sits inside the opening stages of a fresh five-wave push to the upside. He expects more nested impulse moves to build on top of each other and send prices higher as buyers take control. Considering this, XForceGlobal set $5 as a reasonable low-end target for the cycle. He also said XRP could reach $10, $20, and possibly even push toward $30 if momentum accelerates during the peak of the cycle. Latest news Kalshi CEO endorses bill banning insider trading on prediction markets theblock.co 41 m Babylon Bitcoin staking protocol secures $15M investment from a16z Crypto crypto.news 43 m Bitcoin short-term holders near return to profitability as STH-SOPR approaches key level cryptobriefing.com 55 m SEC Crypto Task Force to engage with early-stage crypto builders in Miami cryptobriefing.com 55 m Bitcoin faces ‘boring sideways’ grind in coming months: CryptoQuant CEO cointelegraph.com 55 m Liquidity Paradox: Credit Markets Hit Record Health While Bitcoin Starves beincrypto.com 56 m Top 5 Cryptocurrencies
US Giant Managing $46 Billion Announces Multi-Million Dollar Investment in Surprise Altcoin! Price Soars!
According to Fortune, venture capital giant Andreessen Horowitz (a16z) has invested $15 million in Babylon. Following the news, the BABY token experienced a significant surge. David Tse, co-founder of the startup Babylon, announced that he has received a $15 million investment from a16z crypto, the crypto arm of venture capital firm Andreessen Horowitz. In an interview with Fortune, Tse did not disclose Babylon’s valuation. @media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d098b0a7-6bf7-478a-a0ee-0619d281a09c"] { width: 728px; height: 90px; } } window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "d098b0a7-6bf7-478a-a0ee-0619d281a09c"; sevioads_preferences[0].adType = "banner"; sevioads_preferences[0].inventoryId = "709eacfd-152a-4aaf-80d4-86f42d7da427"; sevioads_preferences[0].accountId = "c4bfc39b-8b6a-4256-abe5-d1a851156d5c"; sevioads.push(sevioads_preferences);
Bitget to delist the BABY On-chain Earn product
Bitget Earn will delist the BABY On-chain Earn product on December 23, 2025, at 4:00 PM (UTC+8). After the product is delisted, any BABY assets currently held in the On-chain Earn product will be automatically transferred to your spot account, with no action required on your part. You can view the transferred assets in your Bitget spot account. Before the delisting time, you may also redeem your funds at any time based on your needs. Please plan your funds accordingly. The BABY Simple Earn product is now available, offering a more flexible and convenient way to earn. You're welcome to check it out here. Thank you for your continued support of Bitget Earn. If you have any questions, please contact our online customer service. Disclaimer Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are strongly advised to do their research as they invest at their own risk. Join Bitget, the World's Leading Crypto Exchange and Web3 Company Sign up on Bitget now >>> Follow us on X >>> Join our Community >>>
Unlocking Potential: Animoca Brands Japan & Babylon Labs Forge Strategic Bitcoin Staking Partnership
In a significant move for Asian crypto adoption, Animoca Brands Japan has signed a strategic Memorandum of Understanding (MOU) with Babylon Labs. This partnership aims to unlock new financial avenues for Japanese corporations through innovative Bitcoin staking and BTCFi solutions. Let’s explore what this alliance means for the future of digital assets in Japan. What Does This Strategic Partnership Entail? Animoca Brands Japan, a key subsidiary of the global Web3 leader, is joining forces with Babylon Labs, a pioneer in Bitcoin staking protocols. Their primary goal is to explore and support self-custody Bitcoin finance (BTCFi) for businesses in Japan. The collaboration will leverage Babylon Labs’ core technology: a trustless Bitcoin vault. This system allows users to stake their Bitcoin to help secure other proof-of-stake blockchains without giving up custody of their assets. Therefore, Japanese corporations can potentially earn yield on their Bitcoin holdings while maintaining full control. This addresses a major concern for institutional players wary of third-party custody risks. The partnership signifies a focused effort to bridge traditional corporate finance with the evolving world of decentralized finance (DeFi). Why Is Bitcoin Staking a Game-Changer for Japan? Japan has a unique and strictly regulated cryptocurrency landscape. Its corporations hold significant capital but often face high barriers to engaging with DeFi protocols due to compliance and security concerns. The trustless model of Bitcoin staking promoted by this partnership could be a pivotal solution. Enhanced Security: Babylon’s vault technology eliminates the need to transfer Bitcoin to a custodian, drastically reducing counterparty risk. New Revenue Streams: Corporations can generate yield from idle Bitcoin treasury assets, creating a novel income channel. Regulatory Alignment: The self-custody aspect aligns better with Japan’s stringent financial regulations regarding asset control. Market Education: Animoca’s strong presence can help educate the market on the practical benefits of Bitcoin staking. Moreover, this initiative could accelerate institutional adoption by providing a familiar and secure entry point into more complex crypto-economic activities. What Are the Challenges and Opportunities Ahead? While promising, this venture is not without its hurdles. The regulatory environment for Bitcoin staking and yield-generating activities remains nuanced in Japan. Clear guidelines from authorities will be crucial for widespread corporate adoption. Furthermore, the technical complexity of integrating these vaults with corporate treasury systems presents a practical challenge. However, the opportunities are immense. Animoca Brands Japan brings deep local market knowledge, an extensive network, and a trusted brand. Babylon Labs provides the cutting-edge technical infrastructure. Together, they can create tailored solutions that meet both corporate and regulatory standards. This partnership could position Japan as a leader in institutional-grade Bitcoin utility, setting a template for other regulated markets globally. Conclusion: A Strategic Step Toward Mainstream BTCFi The alliance between Animoca Brands Japan and Babylon Labs is more than a simple agreement; it’s a strategic bridge. It connects the world’s largest cryptocurrency, Bitcoin, with the sophisticated needs of Japanese institutional finance through the mechanism of Bitcoin staking. By focusing on security, self-custody, and education, this partnership has the potential to unlock billions in corporate capital for the crypto ecosystem. It represents a mature, next-phase approach to blockchain adoption, moving beyond speculation to practical financial utility. Frequently Asked Questions (FAQs) What is Bitcoin staking? Bitcoin staking, in this context, refers to using Bitcoin as a form of collateral or security to support other blockchain networks. With Babylon’s protocol, you can “stake” your Bitcoin to help secure a proof-of-stake chain without ever transferring it out of your own wallet. What is BTCFi? BTCFi stands for Bitcoin Finance. It encompasses all financial applications and services built around Bitcoin, enabling it to be used for lending, borrowing, earning yield, and more—beyond just holding it as an asset. Why is self-custody important for corporations? Self-custody means the asset holder retains full control of their private keys. For corporations, this reduces legal, operational, and counterparty risks associated with entrusting assets to a third-party custodian, which is often a regulatory preference. What does Animoca Brands Japan bring to the partnership? Animoca Brands Japan brings crucial local expertise, a strong regulatory understanding, and an established network of partners and clients in the Japanese Web3 and corporate sectors. Is Bitcoin staking available in Japan now? The partnership is currently at the MOU (Memorandum of Understanding) stage, meaning the companies are formally exploring and developing these services. Widespread availability will follow further development and regulatory engagement. How does this differ from Ethereum staking? Ethereum staking involves locking ETH directly into the Ethereum network’s consensus mechanism. Babylon’s Bitcoin staking allows Bitcoin to be used to secure other, separate blockchains while the Bitcoin itself remains on its native chain. Share This Insight Found this analysis of the Animoca Brands and Babylon Labs partnership insightful? This strategic move could reshape institutional crypto adoption in Asia. Share this article on your social media to spark a conversation about the future of Bitcoin staking and corporate DeFi!
BTC staking platform Babylon teams up with Aave for Bitcoin-backed DeFi insurance
Babylon and Aave partner to enable native BTC as collateral for DeFi lending. BTC can now back decentralised insurance pools, earning yield if unused. Users retain full control of their Bitcoin while accessing DeFi liquidity. In a groundbreaking move for the decentralised finance (DeFi) ecosystem, Bitcoin staking platform Babylon has announced a partnership with Aave, one of the largest decentralised lending protocols. The collaboration aims to allow Bitcoin (BTC) holders to use their native, unwrapped BTC as collateral for lending and to participate in a pioneering DeFi insurance model. This will reshape how Bitcoin interacts with DeFi, unlocking liquidity while maintaining the security that Bitcoin users expect. Native Bitcoin collateral comes to DeFi Traditionally, using Bitcoin in DeFi required wrapping it into a tokenised version such as WBTC, which introduced custodial risk and extra steps. Babylon’s partnership with Aave eliminates this barrier by enabling users to deposit their native BTC directly as collateral. Through Babylon’s trustless Bitcoin Vaults, BTC can be locked in a time-locked contract on its own blockchain and recognised by Aave’s hub-and-spoke lending architecture. This allows users to borrow stablecoins or other crypto assets while keeping full control of their Bitcoin keys. The move is expected to significantly expand BTC liquidity in DeFi. Currently, even the largest wrapped Bitcoin initiatives account for less than 1% of Bitcoin’s total market cap. Babylon’s own staking product secures over 56,000 BTC, demonstrating strong demand for productive uses of Bitcoin. By unlocking native BTC for lending, the partnership could bring a substantial portion of the dormant Bitcoin supply into productive DeFi applications, potentially transforming lending markets. DeFi insurance backed by Bitcoin Beyond lending, Babylon is preparing to extend its vaults into the insurance sector, a development that could redefine how DeFi protocols manage risk. The proposed model allows BTC holders to deposit their Bitcoin into decentralised insurance pools. These pools would serve as coverage against protocol hacks and other failures. Depositors earn yield if no claims occur, while the pool provides liquidity for payouts in the event of a validated exploit. This approach turns Bitcoin into a foundational asset for DeFi risk management, offering a new avenue for yield generation while safeguarding the ecosystem. Babylon co-founder David Tse told CoinDesk that the insurance initiative is still in development, with an official announcement expected in January 2026. Testing for the integrated BTC lending and insurance products is scheduled to begin in early 2026, with a broader rollout planned around April of the same year. The combination of Babylon’s secure vault design and Aave’s extensive liquidity network creates a framework that prioritises both safety and usability, a balance often missing in cross-chain and custodial solutions.
Filled orders
Delivery scenarios