Key Highlights
- Babylon Labs partnered with Ledger to let Bitcoin holders use BTCVaults safely while keeping full control of their coins.
- Ledger’s Clear Signing lets users check and approve transactions directly on their hardware wallet.
- BTCVaults let Bitcoin be used in DeFi without giving it to middlemen, bridges, or wrapped tokens.
Babylon Labs has partnered with hardware wallet maker Ledger to allow Bitcoin holders to use its Trustless Bitcoin Vaults, known as BTCVaults, while approving transactions directly from a Ledger device using the Clear Signing system.
The BTCVaults are designed to let Bitcoin holders use their Bitcoin assets as collateral in decentralized finance applications without using custodians, bridges, or wrapped tokens.
Instead, the Bitcoin remains on its native blockchain and is controlled by rules that are written into the system, which can be checked on-chain. This approach means users can participate in lending, staking, or earning rewards without losing ownership of their Bitcoin.
“Through this integration, Ledger users will be able to authorize vault actions directly on their device. With Ledger Clear Signing, 8 million users will be able to interact with TBV,” Babylon Lab said in its announcement.
Ledger hardware adds extra security
Ledger is expected to act as a secure way to approve the vault transactions. Users will be able to check every detail of a transaction directly on their hardware wallet instead of through a browser or wallet app.
The Clear Signing system displays full transaction details on the user’s device screen before approval, so users can check exactly what they are authorizing before approving, which makes the process more efficient.
Moreover, the team-up connects Babylon’s system to Ledger’s app and supports its token, BABY. Babylon already has over $10 billion worth of Bitcoin through its self-custodial staking system to secure proof-of-stake chains, layer 2 networks, and other decentralized systems.
Growing popularity of self-custodial vaults
Ledger has also expected its Bitcoin-native tools by rolling out a BTC yield program in its Ledger wallet in collaboration with Lombard and Figment to allow users to earn rewards while keeping their Bitcoin on their device.
Meanwhile, Babylon’s infrastructure has been adopted by other platforms. In 2025, Kraken introduced Bitcoin staking to its users in 2025 through Babylon and earned rewards without giving up control of their BTC.
In short, vaults like these are attracting more interest because they combine safety, flexibility, and access to earning opportunities, and institutional teams are exploring ways to use them for large-scale Bitcoin strategies.
Also Read: Winklevoss Twins Move $130M in Bitcoin To Gemini Wallets
