Bitcoin (BTC) news: Babylon Labs raises $15 million for Trustless BTCVaults
Babylon Labs secured $15 million from a16z crypto to develop infrastructure for using native Bitcoin as on-chain collateral.Summary
Babylon Labs announced it raised $15 million in funding led by a16z crypto to build and scale its Babylon Trustless BTCVaults. This infrastructure aims to allow native Bitcoin (BTC) to be used as verifiable, non-custodial collateral across on-chain financial applications without requiring wrapping or custodians.
BTCVaults enable Bitcoin to be locked on the base layer while remaining verifiable to external systems, enforcing conditions like liquidation cryptographically. This contrasts with current solutions that often rely on custodians or wrapped representations, forcing users to relinquish control or convert their assets.
The investment will advance the core technology and support integration with external applications. Babylon Labs intends for this development to enable BTC to function as productive collateral while preserving self-custody on the Bitcoin base layer, addressing the growing institutional use of BTC in lending and derivatives.
(Source：CoinDesk)