.png)
1. Introduction: Bitcoin Enters as a Core Asset in Institutional Finance
As Bitcoin becomes deeply integrated into institutional investors' portfolios, the need for a secure Bitcoin Finance (BTCFi) infrastructure is greater than ever. Especially in the institutional market, where security and regulatory compliance are key, innovative technology is required that goes beyond existing intermediary-based solutions.
Today, global blockchain technology leader Babylon Labs and Infinite Block, a Korean institutional digital asset custody specialist, officially announced that they will pursue joint research and comprehensive cooperation for the era of BTCFi 2.0.
2. Vision for Cooperation: Exploring the Possibilities of Trustless Bitcoin Finance
The core objective of this collaboration is to explore the feasibility of realizing 'Trustless Bitcoin Finance.'
Before immediately launching a commercial service, both companies plan to intensively research technologies and business models for safely utilizing Bitcoin in a decentralized finance environment without the need for intermediaries or risky cross-chain bridges. This will form the foundation for a future where Bitcoin liquidity is accessed and utilized in entirely new ways at the institutional level.
3. Combined Synergy: The Meeting of Technological Innovation and Institutional Security
The cooperation between Babylon Labs and Infinite Block signifies a powerful combination of innovative technology and institutional infrastructure that meets regulatory compliance standards.
- Babylon Labs: Provides technology that allows Bitcoin assets to be utilized directly without the intervention of a third party, through its world-first developed Trustless BTC Vaults technology.
- Infinite Block: Holds the VASP (Virtual Asset Service Provider) qualification in South Korea and, based on its capability to provide optimized custody solutions for institutions, will be responsible for the technology's institutional applicability and secure infrastructure.
The collaboration will focus on exploring the potential for a reliable infrastructure that enables Korean institutions to securely and efficiently store Bitcoin and utilize it within the BTCFi ecosystem.
4. Expected Effects for Institutions and the Market: Providing Both Security and Utility
The value proposition of this joint research is the provision of an innovative integration of 'storage' and 'utilization' for institutional clients.
- Safety of Asset Storage and Utilization: Institutions can safely store Bitcoin through Infinite Block's verified custody infrastructure while also leveraging Babylon Labs' Trustless technology to fundamentally eliminate intermediary risks when using the assets in the BTCFi environment.
- Efficient Liquidity Acquisition: It will enable transparent and efficient decentralized financial participation of institutional funds, opening a new horizon for the utilization of Bitcoin liquidity.
5. Next Steps of Cooperation: Presenting a Roadmap Through Research
Currently, both companies are focused on the practical business model derivation and technology integration research phases. Specific service launch plans will be announced later based on market conditions and research findings. Babylon Labs and Infinite Block aim to explore the potential for Bitcoin financial infrastructure tailored for the institutional market through this cooperation.
Infinite Block CEO, Gu-Tae Jung: "The cooperation with Babylon Labs is a crucial milestone that combines Infinite Block's strong custody capabilities with innovative BTCFi technology. Through this collaboration, we will become a leader in providing Bitcoin solutions that satisfy both security and utility for our institutional clients."
Babylon Labs APAC Lead, Jihoon Yi: "Infinite Block's institutional custody expertise and VASP qualification in Korea are essential stepping stones for our Trustless BTC Vaults technology to be safely integrated into the institutional finance market. Both companies will continue to research new possibilities for institutional Bitcoin finance."
