Binance Labs Backs Bitcoin Restaking Platform BounceBit

Binance Labs has invested in BounceBit, a platform for restaking Bitcoin (BTC), and the CeDeFi protocol.

A cryptocurrency exchange’s affiliated venture capital business, Binance Labs, has put money into BounceBit, a platform for restaking Bitcoin (BTC), and the CeDeFi protocol.

Validators on the BounceBit network can stake both Bitcoin and the native token of the network, thanks to the dual-token structure that combines the security features of Bitcoin with those of the Ethereum Virtual Machine (EVM). The network functions as a Proof of Stake (PoS) Layer 1 blockchain. To improve the network’s security and operational efficiency, BounceBit restacks Bitcoin between different systems, such as oracles and bridges.

Building the framework for a range of restaking products, BounceBit is creating a Bitcoin restaking infrastructure. Mainnet Digital and Ceffu’s regulated custody services protect the infrastructure. Bitcoin holders can earn across networks by integrating parts of decentralized finance (DeFi) and centralized finance (CeFi).

First and foremost, the technology is unique. Its strategy is based on assets interacting with Bitcoin rather than protocols. In addition, BounceBit intends to build a diversified infrastructure to investigate the possible restaking uses of different Bitcoin varieties.

After launching in early access in late 2023, BounceBit has been live ever since. Blockchain Capital and Breyer Capital were among the backers of the protocol’s $6 million seed round earlier this year. According to DefiLlama, BounceBit’s total locked value is now more than $465 million. The testnet version of BounceBit is already live, and later this month, the mainnet version should be available.

Babylon Protocol Receives Investment from Binance Labs, Which Maintains Support for Staking and Restaking Startups

Binance Labs’ latest action shows the firm’s continued interest in staking and restaking fledgling companies. In 2024, Binance Labs backed Renzo and Puffer Finance, two of the most successful Ethereum liquid restaking protocols, with Renzo rising to second place and Puffer Finance to fourth place, according to DeFiLlama statistics.

Babylon is another Bitcoin staking protocol with similar technology to BounceBit, which the venture capital firm recently invested in.