Babylon Secures $15M from a16z to Build Bitcoin-Native Lending
Babylon, a Bitcoin-native lending protocol, received $15 million from a16z Crypto to advance its trustless collateral infrastructure.Summary
Babylon, a decentralized protocol focused on enabling native Bitcoin staking and lending, secured $15 million from a16z Crypto via the sale of its BABY tokens. The funding will support the continued development of Babylon's Bitcoin-native infrastructure, which aims to unlock idle BTC by allowing it to function as productive collateral within DeFi without leaving the Bitcoin network or requiring custodianship. Founded in 2022, Babylon is developing trustless vaults to facilitate onchain lending. Furthermore, Babylon partnered with Aave Labs to integrate native Bitcoin-backed lending into Aave V4, with testing expected in Q1 2026 and a launch targeted for April 2026. This development occurs as the crypto lending sector resurfaces with an emphasis on full collateralization and stricter risk controls following past industry issues.
(Source：Cointelegraph)