Ceffu Partners with Solv Protocol to Elevate Institutional Bitcoin Staking on the Babylon Protocol
We’re thrilled to announce our partnership with Solv Protocol, a decentralized liquidity and yield BTCFi infrastructure, to offer institutional investors a new and secure avenue to earn yield on their idle BTC assets. Powered by our MPC custody wallet using Babylon Labs’ bitcoin staking protocol, institutional clients are now able to stake their BTC holdings directly through their Co-sign Wallet on Proof-of-Stake (POS) blockchains built on top of the Babylon Chain.
Ceffu’s MPC Infrastructure Meets Babylon
Recognizing the early traction and interest in Babylon staking during its testnet phase, we partnered with Solv, whose expertise in building bitcoin-centric decentralized infrastructure helped us design the technical framework to integrate Babylon into our Co-sign Wallet solution.
Powered by multi-party computation (MPC) technology for maximum security, Co-sign Wallet combines speed and more control over the transaction signing process by binding one of its key shares to a client’s personal device of choice when setting up their wallet. This will be regarded as a crucial feature given the limited staking cap of 1,000 BTC in Babylon’s phase 1 launch and the highly anticipated market participation.
“This collaboration is an important milestone in the development of BTCFi, as we are opening up a new path for the value creation of bitcoin by combining Solv's Bitcoin Reserve, Ceffu's institutional custody expertise, and Babylon's innovative staking protocol.” – Ryan Chow, Founder, Solv Protocol
How Babylon’s Native Bitcoin Staking Is Innovating BTCFi
PoS chains typically require substantial economic value for security, while bitcoin, a trillion-dollar asset, has historically remained idle in crypto users’ wallets due to the lack of suitable infrastructure that allowed them to make better use of their BTC holdings. With the Bitcoin DeFi ecosystem continuing to grow in popularity and use cases over the past year, Babylon aims to unlock this dormant capital by enabling bitcoin holders to stake their assets for PoS blockchains without relying on third-party bridging and or wrapping. This approach significantly enhances asset security and allows holders to earn staking rewards on their Bitcoin in a trustless manner.
Babylon is designed to leverage its staked economic value to provide slashable security guarantees, quick stake unbonding, and compatibility with various PoS consensus algorithms. Through its own bitcoin-staked Babylon Chain, the protocol can scale to support numerous stakers while synchronizing the economic security of the protocol’s staked value across multiple PoS chains.
“Babylon’s mission is to expand Bitcoin’s role in the decentralized economy through innovative security-sharing protocols. This collaboration with Solv and Ceffu will enable our Bitcoin staking protocol to serve a broader range of Bitcoin holders and, in turn, improve the decentralization of Babylon.” – Fisher Yu, Co-Founder, Babylon Labs
Solv: The Institutional Gateway to BTCFi
Solv is a liquidity consensus infrastructure provider that curates custody-compliant yield opportunities for both native and fragmented Bitcoin assets across various blockchains. This is achieved through their token representation of Bitcoin, known as SolvBTC, which is backed by Solv's Bitcoin Reserves. As a result, they have risen to prominence not only among retail investors but also by attracting institutional investors seeking entry into BTCFi.
In two quarters since the launch of SolvBTC, Solv has cemented itself among the top 40 largest decentralized finance (DeFi) protocols by total value locked (TVL), with over $1 billion under management according to DefiLlama at the time of writing.
“By combining our expertise in digital asset custody with Solv’s leading BTCFi technology for this integration, we’ve securely expanded our product suite to support native bitcoin staking on Babylon in a remarkably efficient timeline. Together with our partners, we aim to ensure our users have the most efficient and secure infrastructure to participate in the ever-evolving BTCFi and DeFi landscape.” – Ian Loh, CEO, Ceffu
Looking Ahead
We are committed to fostering synergies with innovative protocols like Solv and Babylon, ensuring that our institutional clients stay at the cutting edge of market advancements. This integration signifies the start of a significant evolution within the BTCFi ecosystem, and we are thrilled to play an integral part in its development to open up new opportunities for institutional investors to make the best use of their digital assets.
Deep liquidity without compromising on security
To learn more about how Ceffu’s custody and liquidity solutions can help drive your business forward, contact us using our institutional form.
–
About Ceffu
Ceffu is a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC Type 1 & Type 2 attested. Its multi-party computation (MPC) technology, combined with a customizable multi-approval scheme, provides bespoke solutions allowing institutional clients to safely store and manage their digital assets.
Institutions may also benefit from Ceffu’s secure gateway to a wide range of liquidity products within the Binance ecosystem. This can be achieved through MirrorX, our off-exchange settlement solution, provided in partnership with Binance.
Media contact: pr@ceffu.com
Stay informed
LinkedIn: Ceffu
Twitter: @CeffuGlobal