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Cryptocurrency News Articles

Bitcoin Collateral in DeFi: A Breakthrough Moment

Oct 18, 2025 at 02:00 am

DeFi welcomes Bitcoin! New solutions are emerging, allowing Bitcoin to be used as collateral on Ethereum, marking a breakthrough in decentralized finance.

Bitcoin Collateral in DeFi: A Breakthrough Moment

Bitcoin Collateral in DeFi: A Breakthrough Moment

The buzz is real, folks! Bitcoin, the OG of crypto, is making bigger moves into the DeFi space. We're talking about using Bitcoin as collateral in decentralized finance, which is a pretty big deal.

The Bitcoin-DeFi Connection: Why Now?

For years, Bitcoin existed mostly outside the DeFi ecosystem, like that cool cousin who doesn't use social media. But now, innovators are finding ways to bridge the gap. The latest news highlights a potential breakthrough: using native Bitcoin as collateral on Ethereum.

Babylon Labs' Trustless Vault System

Babylon Labs is claiming to have cracked the code with a system that lets you use your Bitcoin to borrow assets on Ethereum. Their proof-of-concept uses something called a

Original source:cointelegraph

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