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Lombard Finance has launched its Bitcoin Onchain Credit Strategy with Flow Traders as an early institutional participant. <\/p>\n
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The product lets the market maker borrow stablecoins without posting its own collateral directly onchain. Instead, Bitcoin supplied through Lombard\u2019s Bitcoin Earn vault provides separate collateral coverage through Cap\u2019s credit platform.<\/p>\n
The model connects Flow Traders\u2019 demand for stablecoin financing with Bitcoin holders seeking yield. Borrowing premiums paid by the trading firm flow to depositors whose assets support the credit. Lombard said the new allocation sits inside Bitcoin Earn, which has recorded more than $1 billion in deposits from over 38,500 users.<\/p>\n
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Flow Traders accesses stablecoins through Cap\u2019s automated credit marketplace<\/a> on Ethereum. Bitcoin Earn depositors supply the assets that cover the loan, while Symbiotic provides the shared-security layer. Cap\u2019s documents say approved operators can borrow reserve assets after receiving enough collateral from delegators. Each operator receives isolated coverage rather than sharing the same collateral across several borrowers.<\/p>\n If a covered loan falls below its required safety level, Cap can liquidate or slash the delegated assets to repay debt. Lombard CEO Jacob Phillips said, \u201cBy separating the borrower from the collateral provider, the parties involved have made it possible for regulated, institutional trading firms to tap into onchain credit for the first time.\u201d<\/p>\n Flow Traders executive Michael Lie said the strategy links Bitcoin holders with financing demand that is \u201c<\/strong>less correlated to DeFi market conditions.\u201d<\/strong>Flow Traders<\/a> has traded digital assets since 2017 and provides liquidity across exchange-based and bilateral institutional markets.<\/p>\n Bitcoin<\/a> Earn operates as a managed meta-vault. Users can deposit LBTC, BTC.b, WBTC or native Bitcoin and receive BTCe receipt tokens. Professional managers allocate the pooled assets across several strategies rather than one lending market. Sentora manages the initial vault, while Veda supplies its infrastructure.<\/p>\n Lombard launched Bitcoin Earn in February 2026 as a managed Bitcoin yield product. The new credit strategy becomes one allocation within that structure. Flow Traders\u2019 fixed annualized premium adds another source of return alongside other vault strategies, whose yields can change with market conditions.<\/p>\n Lombard\u2019s documentation says BTCe withdrawals may take up to 14 days and settle in LBTC, regardless of the asset originally deposited. The company also lists smart contract, strategy and liquidity risks. Audits may reduce technical risk, but they cannot remove the chance of code failures, losses or delayed withdrawals.<\/p>\n Cap also states that delegators face slashing risk if an operator becomes undercollateralized. The yield therefore reflects defined credit and technical exposure rather than a guaranteed return. Cap\u2019s risk disclosures<\/a> warn that malicious or undercollateralized operators may put delegated assets at risk.<\/p>\nBitcoin Earn adds institutional credit premiums<\/strong><\/h2>\n
Chainlink moves BTC.b into the Ethereum vault<\/strong><\/h2>\n