Quick take:
- Popular exchange platforms like Coinbase and stablecoin issuers like Tether allow users to swap their Bitcoin for collateral, which means holders lose control of the Bitcoin.
- Co-founded by Stanford professor David Tse and Fisher Yu, Babylon is introducing an alternative collateralization system to popular systems, like using wrapped BTC.
- Babylon’s protocol enables collateralization without the user relinquishing control of the Bitcoin.
Babylon, a BTC yield-generation protocol, has announced a $15 million funding round from Andreessen Horowitz crypto venture arm A16z Crypto, according to a report by Fortune.
The company is looking to disrupt the BTC collateralization industry that is currently dominated by crypto exchange platforms like Coinbase and Kraken, and stablecoin issuers like Tether, which allow users to swap their Bitcoin for collateral.
Co-founded by Stanford professor David Tse and Fisher Yu, Babylon is introducing an alternative collateralization system to popular systems, which rely on using wrapped BTC.
The company has built BTCVaults, a protocol that allows Bitcoin holders to directly collateralize their BTC without using a third-party platform or cryptocurrency. Babylon’s protocol enables collateralization without the user relinquishing control of the Bitcoin.
“We’re building protocols using cutting-edge technology to enable people to cut out the middle person and go straight to the goal, which is to be productive,” Tse told Fortune.
According to Tse, Babylon was developed to braided research. His company has no CEO, with him being the Chief Research Officer, while co-founder Yu is the Chief Technology Officer.
“A startup is the natural way of converting research, innovation, and ideas into a product that people can use,” he said.
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The post BTC Yield Generation Protocol Babylon Raises $15M from A16z Crypto appeared first on NFTgators.