Babylon is a decentralized protocol that enables users to natively stake and collateralize their Bitcoin on other decentralized networks without relying on third-party custodians. As a co-founder of the company and an engineering professor at Stanford University, David Tse serves as the lead research scientist guiding the development of these pioneering security-sharing and staking systems. Pulse 2.0 interviewed Tse to learn more.
David Tse’s Background
Could you tell me more about your background? Tse said:
“I’m David Tse, a professor of engineering at Stanford University, where I’ve focused on information theory and wireless communications. I invented the proportional-fair scheduling algorithm, which has been foundational to 3G, 4G, and 5G cellular networks, impacting billions of users. For this and other contributions, I’ve received the IEEE Claude E. Shannon Award and the IEEE Richard W. Hamming Medal, the highest honors in information sciences. My research has evolved to include blockchain infrastructure, motivated by concerns over centralized control of information. I lead a Stanford research group collaborating with entities like the Ethereum Foundation, Protocol Labs, and Cardano to improve blockchain consensus protocols, particularly enhancing Proof-of-Stake (PoS) security and scalability. I’m also the co-founder of Byzantine Research, aimed at leveraging Bitcoin’s security for new use cases, and I serve as an advisor to Bain Capital Crypto.”
Formation Of The Company
How did the idea for the company come together? Tse shared:
“The idea for Byzantine Research stemmed from my blockchain research at Stanford, where I saw the potential to bridge Bitcoin’s unmatched security with the needs of PoS chains and DeFi ecosystems. Bitcoin, as “digital gold,” holds massive value but remains largely idle due to its limited programmability. We aimed to make it productive without compromising custody or trust, starting with trustless staking protocols that allow BTC holders to secure other chains. As co-founder, my primary responsibilities include overseeing research and protocol development, such as advancing trustless Bitcoin Vaults, contributing to technical papers (e.g., on light clients for lazy blockchains), and representing the company at events like Consensus, ETHDenver, and Bitcoin Builders Conference.”
Favorite Memory
What has been your favorite memory working for the company so far? Tse reflected:
“One standout memory is launching our mainnet in 2025 with zero attacks, exploits, or lost Bitcoin, while accumulating 60,000 BTC, the highest TVL for any decentralized BTC protocol. Seeing our trustless staking protocol go live and enable real-world Bitcoin productivity, as discussed at major events like Bitcoin Renaissance at ETHDenver, was incredibly rewarding. Another highlight was our team’s panel discussions and collaborations, like with EigenLayer and Osmosis, where industry leaders praised Babylon’s impact on scaling Bitcoin for DeFi.”
Core Products
What are the company’s core products and features? Tse explained:
“Byzantine Research’s core products focus on making Bitcoin productive trustlessly. Our flagship is the world’s first trustless Bitcoin staking protocol, allowing BTC holders to self-custodially lock their Bitcoin on the Bitcoin chain to secure PoS chains without giving up custody. Key features include slash-proof security, fast unbonding, and integration with ecosystems like Cosmos. We’ve evolved to Trustless Bitcoin Vaults (TBV), a primitive that enables native BTC as collateral for DeFi applications (e.g., lending, stablecoins, options, insurance) without wrappers or intermediaries. TBV uses a standardized interface for easy integration, handling vault registration, verification, and redemption, while supporting multiple use cases through Bitcoin-level scripting.”
Challenges Faced
Have you faced any challenges in your sector of work recently? Tse acknowledged:
“The sector’s challenge has been creating demand for Bitcoin security in new markets; we overcame this by pivoting from pure staking to Trustless Bitcoin Vaults, connecting BTC to proven DeFi marketplaces like lending/borrowing. Our zero-incident launch in 2025 demonstrates our focus on security and rapid iteration.”
Evolution Of The Company’s Technology
How has the company’s technology evolved since launching? Tse noted:
“We’ve integrated native BTC staking on Babylon Genesis and expanded to address Bitcoin’s idle capital problem. By 2025, we invented Trustless Bitcoin Vaults as our new product direction, evolving from staking-focused security to a broader liquidity layer. This allows BTC to serve as verifiable collateral for diverse DeFi products (e.g., BTC-backed lending, stablecoins) while staying on Bitcoin’s base layer. Milestones include accumulating 57,000 BTC Staking TVL and zero exploits.”
Significant Milestones
What have been some of the company’s most significant milestones? Tse cited:
“Key milestones include raising $70 million in May 2024 led by Paradigm to fuel growth; launching trustless BTC staking in August 2024, attracting $1.5 billion in deposits by October; enabling native BTC staking on L2 networks in August 2024; accumulating 57,000 BTC in TVL by 2025 with zero attacks or losses; and securing $15 million from a16z crypto in January 2026 to develop Trustless Bitcoin Vaults. We’ve also hosted events like Bitcoin Renaissance at ETHDenver and Consensus 2024, and unlocked discussions on BTC’s role in a $1 trillion DeFi ecosystem.”
Customer Success Stories
Can you share any specific customer success stories? Tse highlighted:
“While specific individual customer stories aren’t detailed in public posts, we’ve seen strong adoption from PoS chains and DeFi projects integrating our BTC staking protocol. For instance, leaders from Osmosis, PolymerDAO, EigenLayer, and Ankr have highlighted Babylon’s impact on securing PoS systems with Bitcoin, enabling trustless yield for BTC holders. Our protocol has secured the Genesis chain without incidents, with $1.5 billion in staking deposits by late 2024 and a maximum of $7 billion during 2025. Broader success includes experiments with enabling BTC-backed DeFi products like lending via Trustless Vaults, which has been highly praised by peers, partners, and investors.”
Funding/Revenue
Are you able to discuss funding and/or revenue metrics? Tse revealed:
“We’ve raised significant funding: $70 million in May 2024, led by Paradigm, and $15 million in January 2026 from a16z crypto, specifically for Trustless Bitcoin Vaults development, expanding utility for our native BABY token. Revenue metrics aren’t publicly detailed, but our 2025 TVL of 57,000 BTC (highest for any decentralized BTC protocol) indicates strong ecosystem growth. The focus is on protocol utility, with BABY token playing a role in vault operations.”
Total Addressable Market (TAM)
What total addressable market (TAM) size is the company pursuing? Tse assessed:
“We’re pursuing the unlocking of Bitcoin’s $1.8 trillion market (21 million BTC) as productive capital for DeFi and PoS security. Much of this is idle due to limited programmability, representing a $1 trillion+ opportunity in BTC-backed applications like lending, stablecoins, and reinsurance. By bridging Bitcoin to Web3 ecosystems (valued at $200-300 billion), we aim to create a combined super-ecosystem, starting with staking and expanding via Trustless Vaults.”
Differentiation From The Competition
What differentiates the company from its competition? Tse affirmed:
“Babylon stands out with fully trustless, self-custodial protocols, no wrappers, bridges, or intermediaries required. BTC remains on Bitcoin’s base layer while becoming verifiable collateral for external DeFi systems and for staking to earn yieldBTC stays on Bitcoin’s base layer while becoming verifiable collateral for external DeFi systems and collateral for staking to earn yield. Unlike competitors, we focus on native BTC productivity without compromise, enabling primitives like Trustless Bitcoin Vaults for diverse applications (lending, options, insurance). Our zero-exploit track record, Stanford-backed research, and high TVL (60,000 BTC) demonstrate reliability. We’re building a liquidity layer for multiple vaults and apps, not single products.”
Future Company Goals
What are some of the company’s future goals? Tse emphasized:
“Our goals include scaling Trustless Bitcoin Vaults to support a full stack of BTC-backed DeFi businesses (sourcing, integration, infra, yield products); expanding the native Bitcoin.”
“Liquidity Layer for broader financial applications; enhancing BABY token utility in Trustless BTC vault operations; and fostering ecosystem growth through integrations and events. We aim to evolve Bitcoin from passive “digital gold” to active, productive capital, predicting DeFi reshaping traditional finance within years. Ongoing research will focus on security, scalability, and unlocking BTC for a decentralized world.”
Additional Thoughts
Any other topics you would like to discuss? Tse concluded:
“Bitcoin’s renaissance as financial infrastructure is exciting; it’s not just about trading more but anchoring more value in DeFi. We’re grateful for community support, including from South Korea, where we hosted our first meetup in 2024. Also, shoutout to our bug bounty program for keeping the network secure. If you’re interested, check out our blog on Trustless BTCVault 101!”
