Binance Labs Quietly Invests in StakeStone, Bolstering Staking and Restaking Initiatives

Binance Labs Quietly Invests in StakeStone, Bolstering Staking and Restaking Initiatives

Crypto News – Binance Labs, the prominent venture capital arm of the cryptocurrency exchange Binance, has made a strategic investment in StakeStone, an emerging liquidity infrastructure startup specializing in restaking services. The exact amount of the investment remains undisclosed, yet this move underscores Binance Labs‘ continued commitment to fostering innovation within the staking and restaking sectors.

StakeStone positions itself as an ‘omnichain liquidity distribution network,’ boasting the capability to seamlessly integrate various yield sources across multiple chains. Charles K, co-founder of StakeStone, emphasized the platform’s versatility, highlighting its ability to incorporate Ethereum staking, restaking functionalities, real-world assets, as well as cutting-edge technologies like artificial intelligence and decentralized physical infrastructure network assets.

Operating out of Singapore, StakeStone currently offers support for Ethereum restaking on its platform. Users engaging in ether staking through StakeStone are rewarded with STONE tokens, described as ‘yield-bearing ETH,’ which can be further leveraged to unlock additional rewards, as outlined by Charles. Moreover, StakeStone is actively exploring avenues within the Bitcoin restaking ecosystem, aiming to introduce ‘yield-bearing BTC (STONE BTC)’ in the near future.

Charles underscored that StakeStone transcends being a mere liquid restaking protocol, emphasizing that restaking serves as one of the platform’s fundamental strategies. StakeStone harbors ambitious plans to extend its support to Bitcoin and other assets down the line.

In recent months, Binance Labs has intensified its backing for startups operating within the restaking space. Notable investments this year include the Bitcoin staking protocol Babylon, as well as Ethereum restaking protocols Renzo and Puffer Finance. Additionally, Binance Labs recently diversified its portfolio by investing in seven additional startups, encompassing entities like synthetic dollar protocol developer Ethena Labs and zkSync-based decentralized derivatives exchange Derivio.

Binance Labs, valued at $10 billion, underwent a significant restructuring earlier this year, quietly separating from the Binance exchange. This move aligns Binance Labs’ operational structure with that of the Binance-backed BNB Chain project, marking a shift in its organizational framework. Notably, last year saw Binance Labs accepting external capital, culminating in the closure of a $500 million fund. However, over the summer, the initiative commenced returning undeployed capital to limited partners, signifying strategic adjustments within its investment approach.