Bitcoin has always been the asset everyone wants to hold but nobody wants to use. Babylon is trying to change that, and the numbers suggest it’s working.
The Bitcoin staking protocol has crossed $5 billion in total value locked, representing roughly 56,853 BTC committed to its system. At its peak, TVL exceeded $6 billion. Now, through a new partnership with Aave, Babylon is making that locked Bitcoin productive in ways that didn’t exist a year ago.
How the Aave integration actually works
Babylon’s approach uses what it calls Trustless Bitcoin Vaults, or TBVs, to let users stake their BTC natively on Bitcoin’s own network. The staked Bitcoin helps secure Proof-of-Stake chains, and users retain full custody throughout the process.
The Aave partnership, announced in December 2025, extends this concept into lending. Through TBV “spokes,” native BTC can now serve as collateral in Aave’s lending markets. You can borrow stablecoins against your locked Bitcoin without wrapping it, bridging it, or giving up your keys. When you repay the loan, your collateral unlocks.
