Babylon Labs is developing a trust-minimized bridge to connect Bitcoin with Cosmos chains in collaboration with Bitcoin developers Fiamma. The project employs BitVM2, enabling Ethereum-style smart contracts on Bitcoin and facilitating zero-knowledge technology, which is essential for secure asset transfers across blockchains. This initiative aims to unlock the value contained in Bitcoin (BTC) and enhance interoperability with networks that can offer improved transaction speed and scalability. Babylon's staking protocol is notable in this new wave of Bitcoin utility expansion, boasting a total value locked (TVL) of approximately $5.5 billion. The introduction of BitVM2 allows for faster, cost-effective transactions through a rollup approach. This is part of a larger trend to increase Bitcoin's functional capacity, akin to practices already established in ecosystems like Ethereum.

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