The post Babylon Secures $15M from a16z to Build Bitcoin-Native Lending appeared on BitcoinEthereumNews.com. Babylon, a decentralized protocol focused on enablingThe post Babylon Secures $15M from a16z to Build Bitcoin-Native Lending appeared on BitcoinEthereumNews.com. Babylon, a decentralized protocol focused on enabling

Babylon Secures $15M from a16z to Build Bitcoin-Native Lending

Babylon, a decentralized protocol focused on enabling native Bitcoin staking and lending, received $15 million in funding from a16z Crypto through the sale of Babylon’s native BABY (BABY) tokens to the digital asset arm of Andreessen Horowitz.

In a blog post published Wednesday, a16z Crypto said the funding will support continued development of the protocol’s Bitcoin-native infrastructure.

“Bitcoin’s limited programmability” has left large amounts of Bitcoin (BTC) sitting idle, the blog reads, arguing that enabling its use as collateral could unlock a major source of onchain capital and allow BTC to function as a productive asset within decentralized finance (DeFi).

Founded as a Bitcoin staking protocol in 2022 by David Tse and Fisher Yu, Babylon Labs is developing a Bitcoin-native system of trustless vaults that allows BTC to be used as collateral in onchain lending while remaining on the Bitcoin network and under the user’s control.

In December, Babylon partnered with Aave Labs to bring native Bitcoin-backed lending to Aave V4, Aave’s latest lending architecture, with Babylon aiming to build a dedicated “Bitcoin-backed Spoke” that allows BTC to be used as collateral without wrappers or custodians.

The integration is expected to enter testing in the first quarter of 2026, with a joint product launch targeted for April 2026.

BABY rose sharply on Wednesday and was up about 5% at time of writing, according to CoinGecko data.

Source: CoinGecko

Related: Blockrise wins Dutch MiCA license, brings Bitcoin-backed loans to EU businesses

Bitcoin lending evolves in 2025

Crypto-backed lending was widely blamed for magnifying the fallout of the 2022 FTX collapse, as opaque balance sheets, rehypothecation and excessive leverage unraveled alongside falling token prices.

In 2025, however, the sector is resurfacing in a more restrained form, with lenders emphasizing full collateralization, stricter custody practices and tighter risk controls.

In January, Coinbase reintroduced Bitcoin-backed loans in the United States, allowing eligible users outside New York to borrow up to $100,000 in USDC (USDC) against BTC held on the platform. The loans are facilitated by Morpho Labs and executed on Base, Coinbase’s Ethereum layer-2 network.

In March, Xapo Bank launched Bitcoin-backed US dollar loans, enabling eligible clients to borrow up to $1 million against BTC holdings. The bank positioned the product for long-term Bitcoin holders seeking liquidity without selling, stressing that collateral is held in institutional MPC custody and not rehypothecated.

Meanwhile, digital asset lender Ledn moved to a fully collateralized, Bitcoin-only lending model in May. Under its revised structure, the company said client Bitcoin used as collateral will remain in custody and will not be loaned out or reused to generate yield.

Ledn co-founder Mauricio Di Bartolomeo told Cointelegraph in June that Bitcoin holders are also increasingly using BTC-backed loans to finance real estate purchases, allowing them to access liquidity while typically avoiding capital gains taxes.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Source: https://cointelegraph.com/news/babylon-raises-15m-from-a16z-crypto-to-unlock-bitcoin-for-staking-and-onchain-credit?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Market Opportunity
Babylon Logo
Babylon Price(BABY)
$0.01891
$0.01891$0.01891
-4.01%
USD
Babylon (BABY) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

$94.7M Bleeds Out For Third Straight Day

$94.7M Bleeds Out For Third Straight Day

The post $94.7M Bleeds Out For Third Straight Day appeared on BitcoinEthereumNews.com. Spot Ethereum ETFs Face Sustained Pressure: $94.7M Bleeds Out For Third Straight
Share
BitcoinEthereumNews2026/01/10 13:35
United States Building Permits Change dipped from previous -2.8% to -3.7% in August

United States Building Permits Change dipped from previous -2.8% to -3.7% in August

The post United States Building Permits Change dipped from previous -2.8% to -3.7% in August appeared on BitcoinEthereumNews.com. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended…
Share
BitcoinEthereumNews2025/09/18 02:20
Amazon files plans for a 229,000-square-foot retail location in Illinois

Amazon files plans for a 229,000-square-foot retail location in Illinois

Amazon is moving ahead with plans to open a superstore in suburban Illinois that would be bigger than your typical Walmart location, officials confirmed over the
Share
Cryptopolitan2026/01/10 13:00