Lombard has partnered with Babylon to raise $16M for Bitcoin ‘restaking,’ enabling BTC holders to earn interest by bolstering the security of PoS blockchains like Ethereum and Cardano. Polychain Capital emphasizes the transformative potential of restaking, positioning Bitcoin as a productive asset within the Web3 ecosystem.
Through its collaboration with Babylon, Lombard has secured $16M for Bitcoin ‘restaking,’ similar to Ethereum’s process. This allows BTC holders to earn interest by using their BTC to strengthen other crypto networks. Earlier in 2024, CNF highlighted this opportunity as a “game-changer” in the crypto space. Babylon’s model enables PoS blockchains such as Ethereum and Cardano to benefit from enhanced security while providing BTC owners with new utility and profitability.
Blockchain researcher Collin Brown recently tweeted about this development, stating that the move aims to transform BTC from a mere 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 a store of value into a productive asset in DeFi, integrating it into the broader Web3 ecosystem.… [pic.twitter.com/4JK9mI5eqP](pic.twitter.com/4JK9mI5eqP)
> — Collin Brown (@CollinBrownXRP) [July 2, 2024](https://twitter.com/CollinBrownXRP/status/1675409477812482048)
Brown also noted that Polychain Capital leads the funding, highlighting Bitcoin’s potential to drive blockchain growth. Other major participants include BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.
The primary objective of Lombard’s restaking initiative is to elevate BTC from a store of value to a productive asset that contributes to the Web3 economy, fostering sustainable growth.
Initially, the term “restaking” was proposed by Ethereum with EigenLayer, a significant achievement in DeFi history. EigenLayer on Bitcoin, StakeLayer, recently announced its pre-sale distribution, as reported by CNF. EigenLayer surged to $18 billion in deposits within a year by offering users additional interest on assets they’d already “staked” to help secure Ethereum.
Olaf Carlson-Wee, founder of Polychain Capital, stated that despite numerous options that highlight Ethereum’s remarkable restaking features, applicable to Bitcoin, BTC maintains 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.
Currently, Bitcoin (BTC) is trading at $61,185.59, reflecting a 2.83% decrease in the past day and a 1.36% decrease in the past week.
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