Crypto exchange BingX’s BingX Labs has announced a partnership with Babylon.
As per the official announcement on January 2nd, to facilitate the integration of Bitcoin’s security with PoS networks, BingX Labs has contributed $5.3 million to Babylon through its $100 million Ecosystem Fund.
Binance Labs, Paradigm, and other investors have also contributed $96 million to Babylon’s previous investment round.
The investment towards security comes at a time when BingX had suffered a hot wallet incident in the past, making the investment necessary for the ecosystem.
BingX Labs and Babylon Join Forces to Secure the Future of PoS
BingX Labs has announced a strategic alliance with Babylon, a cutting-edge project in the Layer 2 and Bitcoin DeFi ecosystem.
Babylon’s integration offers users several concrete advantages. The UTXO-based locking mechanism will allow Bitcoin holders to safely earn staking rewards without having to move their holdings.
This strategy will allow for passive income opportunities while guaranteeing complete control to investors on their Bitcoin. PoS chain users can also gain from improved security, which lowers the possibility of network intrusions and slowdowns.
Staking and DeFi activities will be made easier and more dependable for Web3 aficionados, which will expand the ecosystem’s potential for expansion and variety.
What Will The Partnership Include?
By safely integrating Bitcoin into PoS networks, Babylon aims to give Bitcoin owners dependable rewards without sacrificing security, via this partnership.
“Our collaboration with Babylon reflects our shared vision to empower innovation and lower entry barriers in the blockchain space,” said Vivien Lin, Head of BingX Labs and Chief Product Officer of BingX.
She adds, “For our users, this means safe and seamless access to staking opportunities and improved security, so this partnership is a natural extension of our commitment to delivering smarter and safer tools for our crypto investors.”
BingX Hot Wallet Incident: What Had Happened?
Today’s investment comes as BingX had previously suffered a hot wallet incident. The hot wallet breach incident resulted in significant losses for the firm.
In a serious cybersecurity issue, BingX had revealed anticipated damages exceeding $52 million after a suspected hack targeted their hot wallet.
But shortly after experiencing the hot wallet problem, the Singaporean cryptocurrency network BingX had reopened for business, fully restoring its operational capability and permitting regular deposits and withdrawals.
In response to the event, BingX had also introduced its brand-new “ShieldX” program, a comprehensive plan aimed at strengthening the platform’s security architecture.