Babylon is developing Babylon Trustless BTCVaults, an infrastructure layer that keeps Bitcoin locked on its base chain while enabling external protocols to verify collateral and enforce unlock or liquidation conditions through cryptographic proofs. The system relies on witness encryption and garbled circuits to allow Bitcoin to efficiently verify zero-knowledge proofs, preserving self-custody and eliminating intermediaries. By doing so, Babylon targets a market in which less than 1% of all BTC is currently wrapped for on-chain use, aiming to activate vast amounts of otherwise idle Bitcoin. The company positions BTCVaults to power borrowing, lending, stablecoins, insurance, credit issuance, and other structured products that demand secure collateral. Babylon also plans to expand the utility of its BABY token, which could facilitate coordination among vault providers, integrations, and end-user applications. Institutions may benefit from reduced counterparty exposure and simpler tax and compliance workflows because BTCVaults avoid asset transformation. To accelerate development and scaling, Babylon has raised $15 million from a16z crypto.

Total raised

$112M

Funding rounds

4

Latest round

Equity

Latest activity

Jan 2026