Babylon Labs and Fiamma, a Lightspeed Faction-backed platform focused on unlocking real-world assets on Bitcoin, are partnering to advance a BTC-secured decentralized world.
Fiamma has secured a strategic investment from Babylon Labs to help commercialize this vision, according to a press release.
As both platforms seek to strengthen a Bitcoin (BTC)-secured decentralized finance ecosystem, the focus will be on providing trust-minimizing 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 on 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 so far. According to DeFiLlama, Babylon Protocol currently holds a total value locked of over $6 billion.
Babylon’s non-custodial platform allows users to stake their BTC to help secure proof-of-stake chains while earning additional rewards on their holdings. The integration with Fiamma’s trust-minimized bridge will further expand the utility of BTC within DeFi.
Fiamma’s expansion amid the growth of real-world applications on Bitcoin includes strategic partnerships with Hack VC, Castle Island Ventures-backed takeover platform Satlayer, and zero-knowledge virtual machine platform RISC Zero.
