Babylon Labs and Fiamma, a Lightspeed Faction-backed platform focused on unlocking real-world assets on Bitcoin, are collaborating to develop a decentralized Bitcoin-secured world.

Fiamma has secured a strategic investment from Babylon Labs to help bring this vision to market, according to A press release.

As both platforms look to boost Bitcoin (Bitcoin) - secure decentralized financial ecosystem, the main focus will be on bringing low-trust Bitcoin bridges to developers and the blockchain.

Babylon Labs and Fiamma plan to integrate zero-knowledge technology into Bitcoin through Fiamma's BitVM2 protocol, opening up new capabilities across Bitcoin's 21 million supply.

The collaboration comes after Fiamma launched the testnet for its Bitcoin bridge in November 2024. The platform also unveiled an upgraded network for Bitcoin's first zero-knowledge verification layer, using BitVM2.

Meanwhile, Babylon Labs has built the largest Bitcoin collection protocol to date, with over 57,000 Bitcoins accumulated to date. According to DeFiLlama, the Babylon protocol currently holds a total locked value of over $6 billion.

Babylon's non-custodial platform allows users to stake their BTC to help secure proof-of-stake chains while earning additional rewards on their holdings. Integration with Fiamma's microtrust bridge will increase the utility of BTC within DeFi.

Fiamma's expansion amid the growth of real-world applications on Bitcoin includes strategic partnerships with Hack VC, Castle Island Ventures-backed recovery platform Satlayer, and zero-knowledge virtual machine platform RISC Zero.