Lombard Secures $16M for Bitcoin \'Reststaking\' Akin to Ethereum, Partnering with Babylon

By partnering with Babylon, Lombard secured $16M for Bitcoin ‘restaking’ akin to Ethereum, allowing BTC holders to earn interest by using BTC to fortify other crypto networks.

Blockchain company Lombard has secured $16 million in a seed round to launch a Bitcoin “restaking” service, enabling BTC holders to earn interest by using their coins to fortify other crypto networks.

The opportunity was first highlighted by CNF earlier in 2024, with the integration being described as a “game-changer” in the crypto space. Now, Babylon’s model will allow Proof-of-Stake (PoS) blockchains like Ethereum and Cardano to benefit from increased security while offering BTC owners a new utility and profitability.

Reacting to the development, blockchain researcher Collin Brown shared his take in a recent tweet, stating that this move aims to turn BTC from a 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 store of value to productive asset in DeFi, integrating it into the broader Web3 ecosystem.… pic.twitter.com/4JK9mI5eqP

— Collin Brown (@CollinBrownXRP) July 2, 2024

Moreover, Brown highlighted that the funding round is led by Polychain Capital, which further underscores Bitcoin’s potential to drive blockchain growth. Among other large companies that participated in the funding are BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.

The main goal with the restaking introduced by Lombard is to elevate BTC from a store of value into a productive asset that flows into the Web3 economy and drives sustainable growth.

Initially, the term “restaking” was introduced by Ethereum with EigenLayer, which is known as one of the prominent achievements in the history of DeFi. Furthermore, EigenLayer on Bitcoin, StakeLayer announced the pre-sale distribution, as explained in a separate CNF post.

EigenLayer went on to achieve $18 billion in deposits in under a year by promising users extra interest on assets they’d already “staked” to help secure Ethereum.

Commenting on the development, Olaf Carlson-Wee, the founder of Polychain Capital, stated that despite the numerous options available, the outstanding restaking features that could be applied to Bitcoin, ultimately BTC has the strongest market value. He said,

“We're excited to support Lombard in their mission to unlock BTC's potential. Among the many promising restaking options available, we believe Bitcoin has the strongest market value, and its integration will have the greatest impact on the growth of the entire blockchain space.”

As of now, Bitcoin (BTC) is trading at the price of $61,185.59, with a decrease of 2.83% in the past day and 1.36% in the past week.

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