A New Era for the $1 Billion Bitcoin Vault: Institutional Credit Move with Global Giant

Lombard Finance has launched a new strategy in collaboration with Flow Traders, allowing Bitcoin holders to use their assets as collateral in institutional credit transactions.

Crypto financial products startup Lombard Finance (BARD) has announced its new product, the Bitcoin Onchain Credit Strategy, through a partnership with global trading giant Flow Traders. This innovative step paves the way for market makers to borrow stablecoins without needing to deposit their own on-chain collateral.

The system is based on the assets collected in Lombard’s Bitcoin Earn vault. The Bitcoin (BTC) assets deposited into this vault by users serve as collateral through a specialized credit infrastructure provided via the Cap platform. This allows institutional investors to access liquidity while individual investors earn yields from premiums generated by institutional demand.

The Era of Bitcoin-Backed Institutional Credit

The Bitcoin Earn vault has already successfully attracted over $1 billion in investment from more than 38,500 users. The platform aggregates various asset types, such as LBTC, WBTC, and native Bitcoin, into a single pool, offering yields to users via BTCe receipt tokens. Thanks to the new strategy, investors gain access to a more stable earning model based directly on institutional demand and less affected by fluctuations in DeFi markets.

Lombard utilizes Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to strengthen its technical infrastructure. This allows assets on the Avalanche network to be securely transferred to Ethereum-based vaults. The startup, which recently raised $17 million in seed funding, also provides infrastructure support to giants like Binance and Bybit. By remaining at the center of the financial ecosystem, Bitcoin continues to bridge traditional credit mechanisms into the digital world.