The world of Web3 continues to evolve, and recent developments in Bitcoin staking are redefining what’s possible with the original cryptocurrency. On April 8, 2025, a landmark event in Tokyo brought together top minds from across the blockchain ecosystem to explore how Bitcoin—long seen as a passive store of value—can now become an active pillar of decentralized security.
Hosted by DeFimans Co., Ltd., a leading Tokyo-based Web3 consulting firm, in collaboration with Babylon Labs, the event gathered over 100 industry professionals, developers, and institutional stakeholders. With support from key partners like BitGo, DSRV, and Hinode Technologies, the meetup served as a powerful platform for discussing innovation, interoperability, and the future utility of Bitcoin.
Unlocking the Third Native Use Case of Bitcoin
For years, Bitcoin has been recognized for two primary functions: digital payments and value storage. But as the Web3 landscape matures, a groundbreaking shift is underway—one that positions Bitcoin as a security backbone for other blockchains.
Babylon Labs is at the forefront of this transformation. The team introduced the world’s first trustless, self-custodial Bitcoin staking protocol, enabling BTC holders to securely stake their native assets on Proof-of-Stake (PoS) networks without intermediaries, token wrapping, or centralized custody.
👉 Discover how Bitcoin can now earn yield while staying secure and self-custodied.
This innovation marks what many now call the "third native use case" for Bitcoin: native staking for network security. Unlike traditional staking models that rely on wrapped tokens or bridges—introducing counterparty risk—Babylon’s approach uses advanced cryptography to lock BTC directly, ensuring full user control and slashing protection.
Keynote Spotlight: Prof. David Tse on Bitcoin’s New Role
The highlight of the evening was a keynote address by Prof. David Tse, co-founder of Babylon and professor at Stanford University. With deep expertise in information theory and blockchain security, Prof. Tse laid out a compelling vision: Bitcoin should no longer be passive.
“We must break Bitcoin’s passivity and fully utilize its value as the security infrastructure of Web3,” said Prof. Tse.
His presentation emphasized how Bitcoin’s unmatched security and decentralization can be leveraged to protect emerging PoS chains. By allowing Bitcoin to secure other networks through staking, Babylon effectively turns BTC into a decentralized security layer—a concept Prof. Tse refers to as the Bitcoin Security Network (BSN).
Currently, the protocol integrates with major L1 and L2 ecosystems including Cosmos, Arbitrum, and Optimism, with plans to expand further. This cross-chain compatibility opens new doors for interoperability, enabling developers to build more secure, scalable applications backed by Bitcoin’s hash power.
Panel Discussion: The Future of Bitcoin in Japan and Beyond
Moderated by Mitsushi Ono, Co-CEO of DeFimans, a distinguished panel explored the evolving role of Bitcoin in global markets—with a special focus on Japan’s growing influence in Web3.
Security Remains Paramount
Rikiya Yanagisawa from BitGo stressed that security is the biggest challenge facing digital assets today. As institutional interest grows, so does the need for reliable custody solutions. BitGo is responding by enhancing its support for self-custody platforms that integrate with Babylon, enabling secure staking without compromising control.
Jiyun Kim of DSRV, a leading blockchain infrastructure provider, highlighted how new use cases like Bitcoin staking are transforming BTC from a static asset into a dynamic participant in decentralized ecosystems. DSRV is actively building developer tools and custody solutions to support this shift.
Scalability Through Shared Security
While Bitcoin itself is not designed for high throughput, panelists agreed that scalability can be achieved through shared security models. Jun Morimoto of Hinode Technologies noted that by bridging Bitcoin with other chains via trustless protocols, its utility expands dramatically—without altering its core consensus.
This approach enhances interoperability, allowing Bitcoin to contribute to network security across multiple layers while maintaining decentralization and trustlessness.
Japan’s Growing Role in Crypto Adoption
Japan is emerging as a key player in crypto innovation. With increasing regulatory clarity and growing public interest in crypto asset management, the market is poised for expansion.
Morimoto pointed out that the approval of Bitcoin ETFs is a game-changer. By allowing investors to access Bitcoin through traditional brokerage accounts, ETFs are attracting new capital and broadening market participation.
Yanagisawa added that ETFs are helping position Bitcoin as a legitimate asset class—driving demand not just for investment but also for advanced services like staking and secure custody.
👉 See how institutional adoption is reshaping Bitcoin’s utility in 2025.
What’s Next for the Bitcoin Ecosystem?
Looking ahead to 2025 and beyond, panelists shared their strategic priorities:
- BitGo plans to launch a secure staking platform supporting Babylon integration, enabling users to stake BTC directly from self-custody wallets.
- DSRV will focus on empowering developers to build on Babylon, emphasizing real-world usage as the driver of protocol value.
- Hinode Technologies will operate Babylon validators and enhance staking-based asset management solutions, particularly tailored for institutional clients with strict accounting and auditing needs.
These efforts reflect a broader trend: Bitcoin is no longer just held—it’s being used.
Frequently Asked Questions (FAQ)
Q: What is Bitcoin staking?
A: Bitcoin staking allows BTC holders to lock their native coins to help secure other blockchains and earn rewards—without giving up custody or using wrapped tokens.
Q: How does Babylon make Bitcoin staking trustless?
A: Babylon uses cryptographic techniques instead of smart contracts or third parties. Users retain full control of their private keys while participating in PoS network security.
Q: Can I stake Bitcoin on Ethereum or Cosmos using Babylon?
A: Yes. Babylon enables BTC to be used as security for PoS chains like those in the Cosmos ecosystem. Integration with additional networks like Arbitrum and OP Stack is already live.
Q: Is there slashing risk when staking Bitcoin?
A: Yes—but it's designed to ensure honest behavior. If a validator acts maliciously, part of their staked BTC can be slashed, maintaining network integrity.
Q: Why is Japan important for Bitcoin adoption?
A: Japan has progressive crypto regulations, growing institutional interest, and strong support for innovation. The introduction of ETFs and rising demand for secure custody make it a strategic hub.
Q: Does Bitcoin staking require wrapping BTC?
A: No. Babylon’s protocol allows native BTC to be staked directly—eliminating bridge risks and preserving decentralization.
Driving Web3 Innovation from Tokyo
The Tokyo meetup was more than just an event—it was a signal of momentum. As global attention turns toward maximizing Bitcoin’s potential, Japan is positioning itself as a leader in responsible innovation.
DeFimans, through its role as organizer, reaffirmed its mission to accelerate Web3 growth in Asia by fostering collaboration between international projects and local stakeholders.
👉 Learn how you can participate in the next wave of Bitcoin innovation.
With pioneers like Babylon Labs reimagining what Bitcoin can do—and institutions embracing new utilities like staking—the era of passive holding may be coming to an end. The future belongs to those who put their assets to work—securely, transparently, and without compromise.
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