Babylon, Ledger partnership targets secure use of bitcoin as DeFi collateral

Babylon Labs and Ledger have partnered to enhance the usability of bitcoin in decentralized finance (DeFi) while maintaining self-custody. The integration supports Ledger’s Clear Signing interface for Babylon’s BTCVaults, allowing users to authorize transactions directly from their Ledger devices. BTCVaults enable bitcoin holders to use their assets as collateral in DeFi applications without relying on custodians or wrapped tokens, keeping assets on the Bitcoin network governed by onchain conditions. This collaboration addresses the limitation of bitcoin’s limited use in DeFi without compromising custody, aligning with Ledger’s commitment to self-custody and security. Babylon’s technology has already activated over $10 billion in native BTC for staking and yield generation, and this partnership expands its ecosystem and Ledger’s offerings in the bitcoin-native financial space.

(Source：The Block)