#baby $BABY Bitcoin lending—who’s actually putting the squeeze on it?
Have you noticed lately how Bitcoin is becoming increasingly popular in the traditional financial world? JPMorgan Chase has started accepting Bitcoin as collateral for institutional loans, and the CFTC officially approved it for use in regulated derivatives starting October 2025. Top institutions all recognize Bitcoin’s collateral value, but although the on-chain credit market is sized at around $64 billion, only about 11% of it truly involves Bitcoin. That’s strange—so who’s putting the squeeze on it?
In reality, it mostly comes down to trust and infrastructure. Most Bitcoin in DeFi today is wrapped or cross-chain. People don’t feel comfortable using it—worrying about hacks, worrying about custody going wrong, and needing to hand over “native” BTC to someone else. This goes completely against the original intent of Bitcoin: “keep control to yourself,” and it also locks away Bitcoin’s enormous potential.
The good news is that Babylon Labs’ Trustless Bitcoin Vaults (TBV) is here to help! It lets your native Bitcoin be used directly as collateral—no bridges, no wrapping, and no intermediaries. The terms are written in advance, and redemption is automatically executed based on cryptographic proofs. It’s already live on the Aave V4 testnet, so you can try native Bitcoin lending.
In simple terms, Babylon wants you to HODL Bitcoin while earning some yield safely, without giving up control. As more applications connect in the future, Bitcoin can finally move more freely instead of being stuck in the bottleneck. When the technology is solid and trust is reduced, the trillion-dollar Bitcoin lending market is set to explode!
$BABY
Have you noticed lately how Bitcoin is becoming increasingly popular in the traditional financial world? JPMorgan Chase has started accepting Bitcoin as collateral for institutional loans, and the CFTC officially approved it for use in regulated derivatives starting October 2025. Top institutions all recognize Bitcoin’s collateral value, but although the on-chain credit market is sized at around $64 billion, only about 11% of it truly involves Bitcoin. That’s strange—so who’s putting the squeeze on it?
In reality, it mostly comes down to trust and infrastructure. Most Bitcoin in DeFi today is wrapped or cross-chain. People don’t feel comfortable using it—worrying about hacks, worrying about custody going wrong, and needing to hand over “native” BTC to someone else. This goes completely against the original intent of Bitcoin: “keep control to yourself,” and it also locks away Bitcoin’s enormous potential.
The good news is that Babylon Labs’ Trustless Bitcoin Vaults (TBV) is here to help! It lets your native Bitcoin be used directly as collateral—no bridges, no wrapping, and no intermediaries. The terms are written in advance, and redemption is automatically executed based on cryptographic proofs. It’s already live on the Aave V4 testnet, so you can try native Bitcoin lending.
In simple terms, Babylon wants you to HODL Bitcoin while earning some yield safely, without giving up control. As more applications connect in the future, Bitcoin can finally move more freely instead of being stuck in the bottleneck. When the technology is solid and trust is reduced, the trillion-dollar Bitcoin lending market is set to explode!
$BABY
