Babylon, a decentralized protocol, secured $15 million from a16z Crypto for native Bitcoin staking and lending. The funding will support Bitcoin-native infrastructure development to unlock onchain capital. Founded in 2022, Babylon Labs aims to allow BTC to be used as collateral in onchain lending under user control.

In 2025, crypto-backed lending is making a comeback with a focus on full collateralization and tighter risk controls. Coinbase reintroduced Bitcoin-backed loans in the US, Xapo Bank launched Bitcoin-backed USD loans, and Ledn shifted to a fully collateralized, Bitcoin-only lending model. Bitcoin holders are using loans for various purposes, including real estate purchases.

Read more at Cointelegraph: Babylon Secures $15M from a16z to Build Bitcoin-Native Lending