The Bitcoin staking landscape has reached a pivotal moment with the launch of Babylon’s Cap-3, marking a significant expansion in staking capacity and reinforcing its position as the largest native Bitcoin staking protocol. With over $2 billion in total value locked (TVL) and growing institutional adoption, Babylon is unlocking new dimensions of utility for Bitcoin—transforming it from a passive store of value into an active, yield-generating asset across decentralized ecosystems.
This latest phase, known as mainnet Phase-1 Cap-3, opens a 1,000 BTC block staking window, vastly increasing accessibility for both retail and institutional participants. The move builds on the success of Cap-2, which attracted 23,857 BTC—valued at over $2 billion—through 10 BTC block increments. Now, with enhanced scalability and broader platform integrations, Babylon continues to pioneer trustless, self-custodial Bitcoin staking without requiring third-party custody, wrapping, or bridging.
How Babylon Is Redefining Bitcoin Utility
At its core, Babylon operates as a security marketplace that connects two key players in the blockchain ecosystem:
- Bitcoin holders seeking yield on their idle assets.
- Proof-of-Stake (PoS) chains and rollups in need of robust, battle-tested security.
By enabling Bitcoin holders to stake their BTC directly and securely to support other blockchains, Babylon leverages Bitcoin’s unmatched security and decentralization to protect emerging networks—all while allowing stakers to earn rewards.
This innovation unlocks access to over $1 trillion in dormant Bitcoin liquidity, transforming BTC from a static asset into a dynamic force powering DeFi, Layer 2s, and data availability layers.
👉 Discover how you can start earning yield on your Bitcoin today.
Institutional Adoption Accelerates with Cap-3
One of the most compelling aspects of Cap-3 is the surge in institutional participation. Leading financial and crypto infrastructure platforms have integrated with Babylon to offer seamless staking access:
- Anchorage Digital, the only federally chartered crypto bank in the U.S., now supports BTC staking for institutional clients through its secure custody infrastructure.
- Sui, a cutting-edge Layer-1 blockchain built on the Move programming language, enables Bitcoin holders to bring their assets onto its high-speed, low-cost network—unlocking $1.8 trillion in potential liquidity.
- Binance, the world’s largest centralized exchange, offers Babylon BTC staking via Binance Earn, giving millions of users simple access to on-chain yields.
- Additional partners include Leap Wallet (first Cosmos wallet to support BTC staking), Onekey hardware wallets (Pro), Unisat, and Gate Web3, ensuring broad accessibility across hardware, software, and exchange platforms.
This wave of integration signals a maturing market where institutions no longer see Bitcoin solely as digital gold—but as a foundational layer for decentralized finance.
Why Native Bitcoin Staking Matters
Unlike wrapped or bridged BTC solutions, Babylon enables native, trustless staking. This means:
- No reliance on intermediaries or custodians.
- Full self-custody is maintained at all times.
- No need for complex bridging mechanisms that introduce counterparty risk.
- Staked BTC remains secure under Bitcoin’s own consensus rules.
By combining the security of Bitcoin with the efficiency of PoS systems, Babylon creates a win-win scenario: Bitcoin holders earn yield safely, while emerging blockchains gain access to unparalleled security without diluting their native tokens.
Expert Insights: A New Era for Bitcoin
Leaders across the ecosystem are recognizing Babylon’s transformative potential.
“With Babylon, bitcoin stakers and institutional providers are building on the $2 billion TVL milestone whilst expanding access for both institutional and retail participants,” said Fisher Yu, CTO of Babylon Labs. “This latest phase strengthens Babylon's role in unlocking untapped value within Bitcoin's trillion-dollar ecosystem.”
“Protocols like Babylon are unlocking new ways for institutions to participate in the Bitcoin ecosystem,” added Nathan McCauley, CEO and Co-Founder of Anchorage Digital. “We are proud to work with crypto innovators like Babylon to streamline institutional access to decentralized finance.”
“Bitcoin is here to stay, and now its utility is accessible to participants on the Sui network,” said Jameel Khalfan, Global Head of Ecosystem at the Sui Foundation. “We’re thrilled to bring staking innovation across Bitcoin and Sui’s powerful networks.”
“Binance is offering users a seamless gateway to on-chain Bitcoin staking,” said Jeff Li, VP of Product at Binance. “This collaboration underscores our mission to simplify access to decentralized finance.”
“Babylon's expanded capacity allows more Bitcoin to enter the ecosystem as a productive asset,” noted Jacob Phillips, Co-founder at Lombard, highlighting the growing demand for liquid staking solutions like LBTC.
Core Keywords Driving the Future of Staking
The rise of Babylon centers around several key concepts reshaping crypto:
- Bitcoin staking
- Native BTC staking
- Self-custodial staking
- Bitcoin liquidity
- Trustless staking
- TVL growth
- Institutional DeFi
- Layer 1 security
These terms reflect not just technical capabilities but evolving user expectations: security, simplicity, yield, and sovereignty—all without compromising on decentralization.
👉 See how you can participate in the next generation of Bitcoin-powered DeFi.
Frequently Asked Questions (FAQ)
What is Babylon BTC staking?
Babylon BTC staking allows Bitcoin holders to securely stake their native BTC to support PoS chains and rollups, earning yield while retaining full custody—no wrapping or bridging required.
How does Cap-3 differ from previous phases?
Cap-3 expands the staking window from 10 BTC blocks (Cap-2) to a 1,000 BTC block capacity, significantly increasing throughput and enabling larger institutional deposits.
Is my Bitcoin safe when staked with Babylon?
Yes. Babylon uses cryptographic protocols that allow staking without relinquishing control. Your BTC remains under your private keys at all times.
Which platforms support Babylon BTC staking?
Supported platforms include Anchorage Digital, Binance Earn, Sui, Leap Wallet, Onekey Pro, Unisat, and Gate Web3—offering diverse entry points for users.
Can institutions stake Bitcoin via Babylon?
Absolutely. With integrations from Anchorage Digital and other custodial providers, institutions can now participate in native Bitcoin staking with enterprise-grade security and compliance.
What is LBTC?
LBTC is a liquid staking derivative issued when BTC is staked via Babylon. It represents staked Bitcoin and can be used across DeFi applications for lending, borrowing, or trading while earning staking rewards.
The Road Ahead: Unlocking Trillion-Dollar Potential
Babylon was founded in 2022 by Stanford Professor David Tse—a member of the U.S. National Academy of Engineering—and Dr. Fisher Yu, bringing together deep expertise in consensus protocols and distributed systems. Their vision? To build a Bitcoin-secured decentralized world, where the strongest blockchain enhances the security and utility of all others.
With over $2 billion TVL and expanding ecosystem partnerships, Babylon is well-positioned to lead this transformation. As more PoS chains adopt Bitcoin-level security and more holders seek yield on their BTC, the protocol’s impact will only grow.
Whether you're an individual investor or an institutional player, the era of passive Bitcoin ownership is evolving. Now is the time to make your BTC work for you—securely, natively, and profitably.