How to Stake BTC to Babylon with Kiln

May 6, 2025

Follow this step-by-step guide to stake your Bitcoin (BTC) to the Babylon protocol via Kiln’s Finality Provider

‍

Babylon has officially launched its mainnet, introducing a groundbreaking protocol that enables native Bitcoin staking without the need for bridges, wrapping, or smart contracts. This development allows Bitcoin holders to directly stake their BTC on the Bitcoin blockchain, enhancing the security of Proof-of-Stake (PoS) networks. In Phase 1, which commenced in August 2024, over 135,000 participants staked more than 57,000 BTC (approximately $4 billion), marking a significant milestone in decentralized finance. Stakers lock their Bitcoin using self-custodial scripts and delegate voting power to finality providers, ensuring that their assets remain under their control while contributing to network security.

‍

Looking ahead, Phase 2 is set to launch in on the 24th of April, introducing the Babylon PoS chain and activating finality providers. This phase will allow BTC stakers to earn rewards in Babylon's native token, $BABY, as their staked Bitcoin begins to secure the Babylon PoS network. The protocol's design ensures that Bitcoin's security can be extended to other blockchains, including those in the Cosmos ecosystem and Ethereum Layer 2 solutions. By eliminating intermediaries and leveraging Bitcoin's inherent security features, Babylon is poised to redefine multi-chain security and staking, offering BTC holders new avenues for participation and reward in the evolving blockchain landscape

‍

Kiln has been working closely with the foundation through all three of its cap raises since inception as a finality provider, and with this move to an open staking environment, there are no cap limits for Bitcoin holders who wish to stake and earn $BABY tokens.

‍

Below is a walk through on how you can stake you BTC via the Babylon staking dashboard to Kiln’s Finality Provider:

‍

Staking Via Babylon Staking Dashboard

First you will need a compatible wallet - a full list of compatible Bitcoin and BABY compaitble Wallets are listed below:

‍

Follow the link to the Babylon Staking Dashboard: https://btcstaking.babylonlabs.io/

Connect both your Bitcoin and Babylon wallets. You will need have the minimum amount of BTC(0.005) and also some BABY tokens in your Babylon Chain Wallet to pay for gas fees.

Once Connected, select the Kiln FP from the dropdown list. We provide multiple FP’s as we support Lombards LST solution as well. Enter your staking amount and click Preview.

Once you have selected the Kiln Finality Provider you will be asked to Preview you transaction, here you can see the staked BTC amount, transaction fee, term, as well the on demand unbonding time (7 days).

‍

Once you have confirmed the details of your stake, you can select to ‘Proceed to Transaction’.

‍

After your staking transaction is included in the Bitcoin blockchain, you will need to wait for 30 blocks to finalize your staking. Note that while waiting the covenant committee will pre-sign the transactions which is a part of the slashing mechanism design. Then you can click “Stake BTC” and sign the transaction via your BTC wallet.

After your staking transaction is included in the Bitcoin blockchain, you will need to wait for 30 blocks to finalize your staking. Note that while waiting the covenant committee will pre-sign the transactions which is a part of the slashing mechanism design. Then you can click “Stake BTC” and sign the transaction via your BTC wallet.

Once you have staked you BTC you will see the message below:

How to unbond from the Babylon Staking Dashboard?

Stakes made through this dashboard are locked for up to 65 weeks. You can on-demand unbond at any time, with withdrawal available after a 7 days unbonding period. If the maximum staking period expires, your stake becomes withdrawable automatically, with no need for prior unbonding.

‍

Dashboard quick instructions :

Locate your active BTC stake in the dashboard.
Click Unbond to begin the unbonding process.
Wait 7 days (1,008 blocks) for the unbonding to complete.
After the waiting period, return to the dashboard on the Withdraw modal, click Proceed to retrieve your BTC.

‍

Why stake with Kiln:

Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake BTC, and to whitelabel BTC staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data, and commission management.

‍

Our clients can stake their tokens from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange, or just their favorite investment app. Kiln makes staking BTC easy, secure, and accessible to everyone.

‍

Kiln has been closely working with Babylon to make sure we provide the best bitcoin staking experience as possible.

We are serving thousands of businesses worldwide so that everyone can securely and seamlessly:

Excellent track record in staking on 50+ protocols, managing more than $11B in stakes.
Trusted by industry leaders such as Ledger, VanEck, Coinbase Cloud, Bitpanda, Crypto.com and many more!
Non-custodial, work with your existing custodians solutions e.g.Ledger, Fireblocks
‍SOC 2 Type II compliance and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)

‍

About Kiln

Kiln is the leading digital asset rewards management platform, enabling businesses to earn rewards on their digital assets, or to whitelabel earning functionality into their products. Our platform is API-first and enables fully automated validators, rewards, and data and commission management. With over $11 billion crypto assets being programmatically staked, Kiln has a particularly strong track record on Ethereum as we run about 5% of the network; this includes 50,000+ active validators with 0 slashing events.

‍