- Lombard partners with Babylon to secure $16M for Bitcoin ‘restaking,’ enabling BTC holders to earn interest by enhancing the security of PoS blockchains like Ethereum and Cardano.
- Polychain Capital emphasize the transformative potential of restaking, positioning Bitcoin as a productive asset within the Web3 ecosystem.
By partnering with Babylon, Lombard secured $16M for Bitcoin ‘restaking’ akin to Ethereum, allowing BTC holders to earn interest by using BTC to fortify other crypto networks. This opportunity was highlighted in CNF earlier in 2024 as a “game-changer” in crypto. Babylon’s model allows PoS blockchains like Ethereum and Cardano to benefit from increased security while offering BTC owners new utility and profitability.
Collin Brown, a blockchain researcher, shared his views in a recent tweet, stating this move aims to turn BTC from a store of value into a productive asset in DeFi, integrating it into the broader Web3 ecosystem.
Lombard secures $16M for #Bitcoin ‘restaking’ akin to #Ethereum, partnering with Babylon to earn interest by using BTC to fortify other crypto networks. This move aims to turn BTC from store of value to productive asset in DeFi, integrating it into the broader Web3 ecosystem.… pic.twitter.com/4JK9mI5eqP
— Collin Brown (@CollinBrownXRP) July 2, 2024
In addition, Brown highlighted that Polychain Capital leads the funding, underscoring Bitcoin’s potential to drive blockchain growth. Other big companies involved include BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.
The main goal with the restaking introduced by Lombard is to elevate BTC from a store of value into a productive asset that flows into the Web3 economy and drives sustainable growth.
Initially, the term “restaking” was proposed by Ethereum with EigenLayer, known as one of the prominent achievements in the history of DeFi. In addition, EigenLayer on Bitcoin, StakeLayer announced the pre-sale distribution, as explained in a CNF post. EigenLayer rocketed to $18 billion in deposits in under a year by promising users extra interest on assets they’d already “staked” to help secure Ethereum.
Olaf Carlson-Wee, the founder of Polychain Capital, stated that despite many options that distinguish Ethereum’s outstanding restaking features, which could be applied to Bitcoin, BTC has the strongest market value. He mentioned,
Our commitment to Lombard represents a deeper belief in the leverage Bitcoin can have in catalyzing growth across the whole blockchain space.
As of now, Bitcoin (BTC) is trading at the price of $61,185.59, with a decrease of 2.83% in the past day and 1.36% in the past week.
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