Babylon Labs and Fiamma, a Lightspeed Faction-backed platform focused on unlocking real-world assets on Bitcoin, are teaming up to promote a BTC-secured decentralized world.
Fiamma has secured a strategic investment from Babylon Labs to help bring this vision to market, it said press release.
While the two platforms look to drive a Bitcoin (BTC)-secured decentralized financial ecosystem, the main focus will be on bringing trust-minimized Bitcoin bridges to developers and blockchains.
Babylon Labs and Fiamma plan to integrate zero-knowledge technology into Bitcoin via Fiamma’s BitVM2 protocol, unlocking new potential in the 21 million Bitcoin supply.
The collaboration comes after Fiamma launched the testnet for its Bitcoin bridge in November 2024. The platform also unveiled a devnet for the first zero-knowledge verification layer for Bitcoin, using BitVM2.
Meanwhile, Babylon Labs has built the largest Bitcoin staking protocol to date, with over 57,000 BTC staked to date. According to DeFiLlama, the Babylon protocol currently has a total value of over $6 billion.
Babylon’s non-custodial platform allows users to stake their BTC to secure proof-of-stake chains while earning additional rewards for their holdings. The integration with Fiamma’s trust-minimized bridge will further expand BTC’s usefulness within DeFi.
Fiamma’s expansion amid the growth of real-world applications on Bitcoin includes strategic partnerships with Hack VC, Castle Island Ventures-backed recovery platform Satlayer, and zero-knowledge virtual machine platform RISC Zero.
