Lombard has launched the Bitcoin Onchain Credit Strategy, allowing market maker Flow Traders to access stablecoin lending backed by Bitcoin.
The product connects corporate demand for liquidity with Bitcoin holders seeking fixed premium yield from a regulated counterparty.
The new mechanism separates borrower and collateral provider functions. Indirect credit line coverage is formed through user Bitcoin deposits, while the borrower pays a fixed annual rate for capital use.
The first counterparty is Dutch market maker Flow Traders, listed on Euronext Amsterdam and regulated in multiple jurisdictions.
Flow Traders will use stablecoins to support trading operations with exchange-traded funds.
Three technological layers support the credit pipeline
- Cap Protocol on Ethereum serves as the credit infrastructure arranging the loan.
- Symbiotic manages LBTC collateral distribution based on programmatic conditions.
- Lombard handles accounting, deposit acceptance, and request processing, using Chainlink CCIP for secure BTC.b token transfers from Avalanche to Ethereum custody.
Bitcoin Earn strategies
The new strategy is part of the Bitcoin Earn product, turning it into a fund of funds. Base deposits now combine two independent strategies.
- Bitcoin Money Market, managed by Sentora: floating yield depending on decentralized lending market rates.
- Bitcoin Onchain Credit Strategy, based on Cap Protocol: fixed rate paid by borrower Flow Traders.
The program accepts LBTC, BTC.b, and native Bitcoin, earning BARD points. The service is not available to U.S. and UK citizens.
Strategy co-founder Michael Saylor believes Bitcoin does not need yield, as the asset should remain “pure digital capital” and the foundation for credit, monetary, and equity structures.