The investment was made through the purchase of BABY tokens to support the development of Babylon’s trustless Bitcoin collateral infrastructure.
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).
