Babylon Labs partners with HODL1 to bring Bitcoin-backed finance to Japan

• Babylon Labs has partnered with HODL1 to bring Trustless Bitcoin Vaults to Japan.
• The system aims to let Bitcoin holders access onchain borrowing without wrapping BTC or handing custody to third parties.
• The first integration is planned for Aave v4, with mainnet launch expected in the fourth quarter of 2026.

Babylon Labs has partnered with HODL1 to help Japanese companies use native Bitcoin as collateral for onchain financial services.

The partnership targets Bitcoin-holding businesses seeking access to decentralised finance without wrapping their BTC or transferring custody to intermediaries.

“There’s a real opportunity to make Bitcoin more productive without asking holders to give up control of their assets,” Babylon Labs co-founder Fisher Yu said in a statement.

Trustless Bitcoin Vaults combine Babylon’s native Bitcoin collateral infrastructure with borrowing liquidity from protocols such as Aave, allowing holders to explore onchain borrowing while retaining control of their Bitcoin.

“Drawing on our expertise as an Ethereum Company, we will support Bitcoin-holding companies in Japan in adopting TBV,” HODL1 Representative Director and CEO Hiroki Tahara said in a statement.

HODL1 will support Japanese Bitcoin-holding companies through assessment, implementation and adoption, extending Babylon Labs’ efforts to connect native Bitcoin with decentralised financial applications.

The ecosystem includes Aegis, Aave, Ledger and GoMining, while Babylon Labs is backed by investors including a16z crypto, Paradigm, Polychain and Galaxy.

Trustless Bitcoin Vaults are expected to launch on mainnet in the fourth quarter of 2026, with the first integration planned for Aave v4.