One detail stood out to me in the Babylon Trustless Bitcoin Vaults (TBV) campaign: the focus isn’t just on “using Bitcoin,” but on using native BTC as collateral without wrapping it, bridging it, or routing it through intermediaries.

That detail matters because Bitcoin is huge, but economically still mostly passive. People hold it, move it, or sell it. Once they want utility, the usual path is to turn it into a more flexible version of itself somewhere else.

TBV points to a different idea.

Not just Bitcoin as stored value, but Bitcoin as working collateral and importantly, collateral in native form.

That’s the part I keep coming back to. The feature itself is one thing. The bigger implication is that TBV reflects an attempt to expand Bitcoin’s financial role without first abstracting Bitcoin away.

If that model becomes viable, it could matter well beyond one campaign.

Because then the question is no longer whether Bitcoin can be held securely. It’s whether native BTC can start participating in on chain finance without first becoming something else.
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Native BTC as collateral?