Lombard Finance (BARD) has launched its Bitcoin Onchain Credit Strategy with global trading firm Flow Traders (Euronext: FLOW) as the pilot partner. The product enables Flow Traders to borrow stablecoins for market-making without posting its own on-chain collateral, instead using Bitcoin deposited by Lombard users as coverage via an underwriting setup run on Cap’s private-credit platform.
The strategy sits within Lombard’s Bitcoin Earn yield product, a meta-vault that has attracted over $1 billion in deposits from more than 38,500 users. Depositors can allocate assets like LBTC, BTC.b, WBTC, or native BTC into a single vault operated by Sentora and powered by Veda infrastructure, receiving BTCe receipt tokens in return. The Bitcoin Onchain Credit Strategy functions as one allocation inside this vault, distributing underwriting premiums paid by Flow Traders back to depositors, offering a more stable return driven by institutional demand rather than volatile DeFi markets.
“Liquidity providers like Flow Traders use stablecoin financing to efficiently support their digital asset trading operations,” said Michael Lie, Global Head of Digital Assets at Flow Traders. “Lombard’s Bitcoin Onchain Credit Strategy connects Bitcoin holders with institutional financing activity, driven by real institutional demand and less correlated to DeFi market conditions.”
The announcement highlights that Cap’s automated marketplace uses smart contracts—not manual intervention—to allocate capital, ensuring each loan is independently vouched for and guaranteed. Additionally, Lombard has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to secure cross-chain deposits of BTC.b from Avalanche into an Ethereum vault. Lombard also provides infrastructure for Binance and Bybit and acquired Avalanche’s bridged Bitcoin asset BTC.b last October. The startup, founded in 2024, previously raised $17 million in seed funding from Polychain Capital, Franklin Templeton, and others.
