TLDR:
- Babylon plans to launch the Trustless Bitcoin Vault public testnet during the final week of May.
- The TBV protocol enables Bitcoin-backed DeFi borrowing without bridges or wrapped Bitcoin exposure.
- Babylon reduced peg-in times to nearly three hours while lowering on-chain costs by over three times.
- The BABY token redesign may include governance, staking access, and auction-based protocol fees.
Babylon presented new updates during its fourth quarterly founders call, featuring CMO Tristan Dickinson and co-founders David S. and Fisheru.
The team outlined progress on its Trustless Bitcoin Vault protocol and broader Bitcoin DeFi strategy.
Babylon stated that its Bitcoin Staking Protocol has secured more than $10 billion in Bitcoin historically and currently holds over $4 billion.
The discussion also covered protocol security, tokenomics revisions, and growing institutional interest in Bitcoin-backed decentralized finance.
Babylon Targets Native Bitcoin Utility Across DeFi Markets
Babylon said the Trustless Bitcoin Vault protocol aims to remove risks linked to bridges and wrapped Bitcoin models.
The protocol allows Bitcoin holders to lock assets in self-custodial vaults directly on Bitcoin. Those assets can then support DeFi activity on chains such as Ethereum without transferring ownership.
The founders explained that Bitcoin users often avoid DeFi because of bridge failures and centralized custody concerns.
During the founders call shared through Babylon’s official channels, the team described TBV as fully on-chain and cryptographically verifiable.
The protocol is designed to maintain native Bitcoin ownership while enabling lending and borrowing activity.
Babylon also confirmed several research milestones ahead of the protocol’s public release. Deposit times for peg-ins have been reduced to nearly three hours.
The company added that the timing now depends mainly on Bitcoin confirmation speeds. In addition, on-chain transaction costs have been lowered by more than three times.
The protocol now includes delegation capabilities for Bitcoin holders seeking yield opportunities. Users can delegate borrowing power to yield providers without surrendering custody of their Bitcoin holdings.
Babylon stated that this structure improves safety while allowing users to participate in external financial products connected to decentralized finance markets.
Babylon Revises BABY Token Structure as Security Audits Continue
Babylon confirmed that multiple security firms are auditing the Trustless Bitcoin Vault protocol before launch. The company plans to release its public testnet during the final week of May.
Its first product will focus on native Bitcoin-backed borrowing before expanding into fixed-interest borrowing, insurance products, and options services.
The founders also addressed the BABY token and ongoing tokenomics revisions. Babylon paused plans to bridge the token to Ethereum because of security concerns surrounding bridges.
The team stated during the founders call that reducing bridge exposure remains a priority for the broader protocol structure.
According to the discussion, Babylon adjusted the token unlock schedule to avoid large release cliffs. The company is also redesigning token utility with support from Andreessen Horowitz.
Proposed functions include governance participation, staking access, and auction-based mechanisms connected to protocol fees.
Babylon linked its long-term strategy to growing institutional participation across crypto markets. The founders referenced recent conversations during Consensus 2026 in Miami, where institutional firms focused on secure collateral and capital efficiency.
Babylon stated that native Bitcoin-backed lending and stablecoin infrastructure could accelerate broader BTC DeFi adoption while reducing security concerns across on-chain finance.
