Lombard Finance Adopts Chainlink for Institutional Bitcoin Credit Strategy

Bitcoin Collateral Meets Institutional Credit

@Lombard_Finance has launched its Bitcoin Onchain Credit Strategy, opening a new route for institutional players to access stablecoin liquidity using Bitcoin as collateral. The product lets $LBTC and native $BTC holders earn fixed premiums by providing collateral that backs institutional stablecoin credit facilities. The strategy gives regulated firms a way to post Bitcoin as collateral and borrow stablecoins through a private underwriting structure on Cap, an automated credit marketplace.

The strategy uses @Chainlink CCIP to accept $BTC.b deposits from @Avax into a vault operating on Ethereum, reducing the need for investors to manually bridge, exchange, or reissue their Bitcoin-linked assets before entering the strategy. Lombard had already selected CCIP as the exclusive interoperability system for more than $1 billion of Bitcoin-backed assets, including $LBTC and BTC.b.

Flow Traders Steps Onchain as Inaugural Counterparty

Flow Traders, one of the more recognizable names in institutional digital asset trading, serves as the pilot partner for the rollout. Established in 2004, Flow Traders is a leading multi-asset market maker and liquidity provider that has been publicly listed on the Euronext Amsterdam Stock Exchange since 2015. The firm handles billions of dollars in daily trading volume and is one of the main market makers in ETFs, ETPs, equities, fixed income, commodities, and crypto.

The partnership allows a regulated institution to access decentralized capital in a functional, traceable, and automatically secured manner, marking a real shift as institutions move from viewing DeFi from the outside to using it for concrete financial operations.

Founded in 2024, Lombard pioneered Bitcoin's integration into DeFi with $LBTC, the leading yield-bearing Bitcoin asset secured by a consortium of 14 digital asset institutions. LBTC reached $1 billion in TVL in just 92 days and became the first Bitcoin LST trusted by blue-chip protocols including Aave, Spark, and EigenLayer. The protocol operates across Ethereum, Base, and Solana, which matters because institutional allocators increasingly want cross-chain exposure without managing the operational complexity of bridging assets themselves.

Sources:
Crypto Briefing: Lombard Finance launches Bitcoin onchain credit strategy with Flow Traders
AlexaBlockchain: Lombard Opens Bitcoin-Backed Credit Vault With Flow Traders as First Borrower
Lombard Finance: Lombard and Chainlink Partner to Set the Industry Standard for Bitcoin in DeFi