Babylon Bitcoin Orange https://t.co/abR6510ySF
Babylon
Self-custodial Bitcoin staking protocol securing PoS chains with over $3.3B TVL and no bridging
3.9/ 5
Our score
Good
Type
Native staking
Audited
Yes
What is Babylon?
Babylon is a decentralized Bitcoin staking and collateral protocol that lets native BTC holders earn yield by securing proof-of-stake networks without wrapping, bridging, or giving up custody. Its total value locked stood at about $3.32B in October 2026, with over 100,000 native Bitcoin activated across its infrastructure.
Team and backing
Babylon Labs was founded in 2022 and is based in Palo Alto, California. The project was co-founded by Stanford University professor David Tse and consensus protocol researcher Fisher Yu, whose foundational research on Bitcoin security was presented at the 2023 IEEE Symposium on Security and Privacy. The company employs between 51 and 200 staff members. Babylon has raised more than $111M in total funding across several rounds, including an $18M Series A in December 2023 led by Polychain Capital and Hack VC, a $70M round led by Paradigm in May 2024, and a $15M investment from a16z crypto in January 2026 through a purchase of BABY tokens. Additional backers include Binance Labs.
How Babylon works
The protocol operates through self-custodial Bitcoin scripts directly on the Bitcoin network. Users lock their native BTC inside Trustless Bitcoin Vaults (TBV) on-chain rather than handing custody to a multi-signature bridge or centralized custodian. This locked Bitcoin grants staking rights to secure external proof-of-stake networks. Through its TBV architecture, Babylon also supports cross-chain collateralization. On public testnet, borrowers can post native Bitcoin to take out loans on Ethereum through Aave v4 without introducing wrapped token counterparties. In addition to staking, the system implements Bitcoin timestamping and data availability to extend Bitcoin's base-layer security to external networks.
Availability and track record
Users worldwide can interact directly through self-custodial Web3 wallets. The protocol launched public testnet integrations for native Bitcoin borrowing on Aave v4 in October 2026. The team maintains a public bug bounty program.
Risks and trade-offs
Stakers face primary operational risks tied to slashing, where validator misbehavior or double-signing on a connected proof-of-stake network can trigger programmatic penalties against locked native collateral. Native custody avoids reliance on bridge counterparties. However, depositors remain exposed to unbonding lockup periods and smart contract bugs when using vaults as borrowing collateral on external virtual machines.
Founders
David TseCo-Founder
Stanford University professor and consensus protocol researcher who co-authored seminal research on Bitcoin security.
Fisher YuCo-Founder
Consensus protocol researcher and co-author of foundational research papers on Bitcoin security.
Best for:Long-term Bitcoin holders seeking native yieldsDeFi borrowers wanting unbridged BTC collateralProof-of-stake networks bootstrapping economic security
Pros and cons
Pros
- No wrapping or bridge counterparty risk for staked Bitcoin
- Over $3.3B in total value locked as of October 2026
- Full self-custody maintained on the Bitcoin blockchain
- More than $111M raised from major venture firms including Paradigm and a16z
Cons
- Subject to programmatic slashing penalties if assigned validators misbehave
- Withdrawals require unbonding time before native BTC unlocks
- Restaking architecture introduces complex multi-layer contract risk
Our review
3.9/5
Good
Babylon lets holders stake native Bitcoin without bridging or wrapping to secure proof-of-stake chains, but restaking exposes deposited capital to slashing and unbonding lockups.
Babylon enables holders to stake native BTC to secure proof-of-stake networks without wrapping tokens or transferring custody to a cross-chain bridge. Stakers lock their Bitcoin directly on the Bitcoin network using self-custodial scripts, retaining sovereign control of their underlying keys while earning validation yields from external consensus systems.
The protocol addresses the counterparty risks inherent in traditional wrapped assets. Instead of trusting centralized custodians or multisig bridge contracts, deposits are secured directly by native Bitcoin script mechanisms. By October 2026, total value locked stood at approximately $3.32B, with more than 100,000 native BTC activated across Babylon's architecture. Alongside native staking, Babylon introduced Trustless Bitcoin Vaults (TBV) to supply native Bitcoin collateral to decentralized lending protocols, starting with an Aave v4 integration on public testnet.
Key structural trade-offs center on restaking risk and capital liquidity:
- Slashing mechanics subject staked Bitcoin to slashing penalties if an assigned validator commits consensus violations on consumer networks.
- Withdrawals require unbonding periods, locking capital until time-lock parameters clear on the Bitcoin blockchain.
- Smart contract and script vulnerabilities remain an inherent consideration across novel cryptographic contracts and downstream protocol integrations.
Palo Alto-based Babylon Labs was founded in 2022 by Stanford professor David Tse and consensus researcher Fisher Yu. The team has raised over $111M from investors including Paradigm, Polychain Capital, Hack VC, and a16z crypto, supported by foundational research accepted at the IEEE Symposium on Security and Privacy. Babylon suits long-term Bitcoin holders seeking self-custodial yield who accept slashing and withdrawal delays.
Specs
| Type | Native staking |
|---|---|
| Stakeable assets | BTC |
| Chains | Bitcoin |
| Audited | Yes |
| Restaking | Yes · unverified |
Not disclosed by the provider: KYC required, Receipt token, Protocol fee, Minimum stake, Withdrawal time, Node operators, Slashing cover, Typical reward rate.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Bridgeless native staking
Locks BTC directly on the Bitcoin network in self-custodial scripts without wrapping tokens or relying on third-party custodians.
Trustless Bitcoin Vaults
Enables native Bitcoin to serve as on-chain collateral for cross-chain borrowing, including integrations with Aave v4 on Ethereum.
Proof-of-stake security sharing
Directs native Bitcoin economic security to validate external PoS chains in exchange for network rewards.
Bitcoin timestamping
Provides immutable timestamping services derived from Bitcoin blocks to improve the security of PoS networks.
Bitcoin data availability
Utilizes base-layer Bitcoin infrastructure to supply decentralized data availability services to connected chains.
Inside Babylon
Bitcoin Staking
Allows users to lock native Bitcoin in self-custodial vaults to provide economic security to proof-of-stake networks in exchange for staking rewards.
Trustless Bitcoin Vaults (TBV)
Collateral infrastructure that lets native Bitcoin be used across decentralized finance applications without wrapping, bridging, or centralized intermediaries.
Native Bitcoin-Backed Borrowing
A DeFi lending application allowing users to post native Bitcoin collateral to borrow stablecoins, deployed on public testnet in partnership with Aave v4.
Bitcoin Timestamping Protocol
A security service that submits cryptographic timestamps of external proof-of-stake transactions onto the Bitcoin blockchain.
Bitcoin Data Availability Protocol
An infrastructure solution using Bitcoin network capacity to provide decentralized data availability guarantees for external rollups and blockchains.
Babylon screenshots
What users say about Babylon
The protocol offers a self-custodial and trustless approach to Bitcoin staking and borrowing without bridging or wrapping.
In their own words
“Bitcoin Borrowing, Repriced Bitcoin borrowing, repriced. Trustless Bitcoin Vaults allow native Bitcoin to access on-chain liquidity without wrapping, bridging or intermediaries. Your Bitcoin stays on the Bitcoin network. You keep custody.”
“You might already be wondering which projects are fixing this.. heres what i found: **1. MIDL** A Bitcoin DeFi platform building natively on Bitcoin's security model — no wrapping, no bridging, no unnecessary trust assumptions. MIDL lets you put your BTC to work directly on Bitcoin rails.”
Based on 5 Reddit posts and comments from the last 12 months, checked Oct 20, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used Babylon? Share your experience below.
Funding and investors
$121MTotal raised
5Rounds
8Investors
FAQ
Who founded Babylon?
Babylon Labs was founded in 2022 by Stanford University professor David Tse and consensus researcher Fisher Yu. The project emerged from academic research on Bitcoin security co-authored with EigenLayer founder Sreeram Kannan.
Does Babylon require KYC to stake?
The protocol operates in a self-custodial manner and is accessible globally through standard Web3 wallets.
Is Babylon safe to use?
Babylon avoids bridge and wrapping dependencies by locking native BTC in self-custodial scripts on the Bitcoin network. However, stakers remain exposed to programmatic slashing risks if delegated validators act maliciously on connected networks.
What assets and chains does Babylon support?
Babylon supports native Bitcoin (BTC) on the Bitcoin blockchain. It connects to external proof-of-stake chains and DeFi environments, including borrowing testnet integrations on Ethereum.
Does Babylon have a token?
Yes, Babylon utilizes the BABY token. Venture firm a16z crypto purchased $15M worth of BABY tokens in January 2026 to support the development of Trustless Bitcoin Vaults.
How does native Bitcoin staking work on Babylon?
Holders lock native BTC into Bitcoin scripts directly within their own wallets without transferring ownership to an intermediary. These locked balances grant rights to help validate external networks and receive protocol rewards.
Latest from Babylon on X
Thanks @AleaResearch for the thoughtful analysis.
A great insight captured Babylon's direction very well: building on Trustless Bitcoin Staking to make native BTC usable as collateral through Trustless Bitcoin Vaults (TBV).
A great insight captured Babylon's direction very well: building on Trustless Bitcoin Staking to make native BTC usable as collateral through Trustless Bitcoin Vaults (TBV).
Your Bitcoin. More possibilities. ₿
Introducing the Bedrock × Babylon vault.
Powered by Babylon Trustless Bitcoin Vaults (TBV), bringing native Bitcoin collateral to DeFi without wrapping or bridging.
More details coming soon. https://t.co/XFYx4ILzOW
Introducing the Bedrock × Babylon vault.
Powered by Babylon Trustless Bitcoin Vaults (TBV), bringing native Bitcoin collateral to DeFi without wrapping or bridging.
More details coming soon. https://t.co/XFYx4ILzOW
Meet the new Babylon Trustless Bitcoin Vaults (TBV) app. 🟠
We've refreshed the testnet UI for native Bitcoin-backed borrowing, with clearer navigation and dedicated pages for your positions, activity, vaults, and loans.
Here's what's new ↓ https://t.co/XwvXl2Jmu8
We've refreshed the testnet UI for native Bitcoin-backed borrowing, with clearer navigation and dedicated pages for your positions, activity, vaults, and loans.
Here's what's new ↓ https://t.co/XwvXl2Jmu8
Bringing native Bitcoin-backed borrowing to Japan 🇯🇵
Babylon and @HODL1_2345 are working together to connect Bitcoin and Ethereum through Babylon TBV, enabling native Bitcoin-backed borrowing.
HODL1 will help Japanese companies evaluate and adopt TBV, expanding access to Ethereum-based financial services using native Bitcoin as collateral.
Babylon and @HODL1_2345 are working together to connect Bitcoin and Ethereum through Babylon TBV, enabling native Bitcoin-backed borrowing.
HODL1 will help Japanese companies evaluate and adopt TBV, expanding access to Ethereum-based financial services using native Bitcoin as collateral.
Recent public posts from @babylonlabs_io, shown as published. Not reviewed or endorsed by CryptoReview.
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