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Babylon hits $5B in staked BTC, partners with Aave for native BTC lending without wrapping or custodians.

Protocol Fundamentals
12 Jun 2026
Crypto Briefing
View Source
Bullish
pluang ai news

Babylon, a Bitcoin staking protocol, has secured over $5 billion in staked Bitcoin, allowing users to stake BTC natively on Bitcoin's network and earn yield by helping secure Proof-of-Stake chains. Through a new partnership with Aave, users can now borrow stablecoins against their locked BTC without wrapping, bridging, or giving up custody, unlocking new borrowing options in decentralized finance. Babylon's approach keeps BTC on its native chain, offering unique utility and security compared to wrapped BTC products, though investors should consider smart contract and staking risks. This integration marks a significant step in expanding Bitcoin's DeFi capabilities while maintaining user control over assets.

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