Bitcoin Earn's newest allocation generates yield from a source most DeFi products have never touched — a fixed premium allocated by institutional participants to borrow stablecoins onchain.

Today, Lombard is launching Bitcoin Onchain Credit Strategy, a new allocation within Bitcoin Earn that connects institutional demand for stablecoin credit with Bitcoin holders seeking yield. The Strategy is live today, with institutional participants including Flow Traders accessing stablecoin liquidity through the new structure.

It's the first time a regulated, publicly listed institution has accessed onchain credit this way. And it gives Bitcoin holders a yield source most DeFi products have never touched: a fixed premium paid by a real counterparty with a real balance sheet.

“Asset managers have a real, persistent need to borrow stablecoins, but until now, DeFi markets weren’t built in a way they could access. This structure changes that. By 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. Bitcoin holders are earning yield directly from that demand, not from incentives or speculation, but from real institutional usage.” Jacob Phillips, Co-Founder and CEO of Lombard Labs.

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THE COUNTERPARTY: FLOW TRADERS

The institutional partner is Flow Traders, a leading global trading firm founded in 2004, with its primary business in market making Exchange-Traded Products (ETPs), such as ETFs. Flow Traders is publicly listed on Euronext Amsterdam (ticker: FLOW), and regulated across multiple jurisdictions. Flow Traders is one of the most active institutional participants in digital asset markets, having played a central role in early Bitcoin and Ethereum ETF market-making.

“Liquidity providers like Flow Traders use stablecoin financing to efficiently support their digital asset trading operations. 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.” Michael Lie, Global Head of Digital Assets at Flow Traders.

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THE PROBLEM THIS SOLVES

Institutional trading firms, asset managers and liquidity providers often need stablecoin liquidity to support trading and treasury operations. Traditional DeFi lending typically requires borrowers to post onchain collateral in pooled lending markets, a structure that can be difficult for many regulated institutions to use.

Bitcoin Onchain Credit Strategy introduces a different approach. Rather than requiring the borrower to post onchain collateral directly, collateral coverage is provided through the Strategy, allowing eligible institutional borrowers to access stablecoin credit through a separate underwriting structure.

By connecting institutional borrowing demand with Bitcoin collateral providers, the Strategy creates a new source of Bitcoin-denominated yield driven by real financing activity.

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HOW IT WORKS

The mechanism is straightforward. Here is the full flow of funds:

1. An institutional borrower requires stablecoin liquidity

2. They access a credit line through Cap Protocol, an institutional stablecoin credit protocol on Ethereum.

3. To access that credit, they need collateral coverage. That coverage comes from deposits into the Bitcoin Onchain Credit Strategy where depositors' Bitcoin assets serve as the collateral backing the facility.

4. Symbiotic's collateral markets handle the collateral delegation, with programmable conditions enforced at the protocol level.

5. An institutional borrower, like Flow Traders, contributes a fixed annualized premium to collateral providers on the stablecoins it borrows. This rate is agreed bilaterally and does not fluctuate with DeFi market conditions.

TWO YIELDS, ONE VAULT

Bitcoin Onchain Credit Strategy joins Bitcoin Earn as a second, structurally distinct yield source, alongside the existing Sentora-managed Bitcoin Money Market Strategy.

Bitcoin Money Market (managed by Sentora): variable yield from DeFi lending markets, optimized continuously against onchain lending rates.

Bitcoin Onchain Credit Strategy (powered by institutional borrowing demand via Cap Protocol): a fixed annualized premium from institutional borrowing demand.

Bitcoin Earn at a glance:

— $1B+ in cumulative deposits since launch — 3-4% net APY — 38,500+ users globally — Two uncorrelated yield sources within one deposit

This is the fund-of-funds model applied to Bitcoin yield, the same structural logic that became the institutional standard in traditional asset management, now available as a single vault deposit for any Bitcoin holder.

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WHAT MAKES THIS POSSIBLE

Bitcoin Onchain Credit Strategy runs on three foundational layers.

Symbiotic provides the collateral commitment and underwriting infrastructure that enables LBTC to be delegated as collateral with programmable, protocol-enforced conditions. This is what makes it possible for Bitcoin assets to serve as institutional collateral coverage without centralized intermediaries or manual position management.

Cap Protocol is the institutional stablecoin credit infrastructure platform sourcing financing for Flow Traders and through which the underwriting premium is distributed to depositors.

Lombard provides the vault infrastructure, deposit and redemption management, accounting, and allocation rails that makes Bitcoin Onchain Credit Strategy accessible as a straightforward vault deposit for participants. Within this layer, Lombard uses Chainlink's Cross-Chain Interoperability Protocol (CCIP) to enable secure cross-chain deposits of BTC.b directly from Avalanche into the Ethereum vault, unlocking multi-chain distribution. Chainlink CCIP was selected for its security architecture, including 16 independent node operators per bridge lane, rate limits that act as circuit breakers, and SOC 2 Type 2 compliance, meeting the standards required by major financial institutions.

Together, these three layers take what has previously existed only in institutional over-the-counter credit markets and make it accessible on-chain to any Bitcoin holder.

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HOW TO ACCESS

Bitcoin Onchain Credit Strategy is live and accepting deposits now. Deposit directly into the Bitcoin Onchain Credit Strategy → https://www.lombard.finance/app/earn/btcoc/ Deposit into Bitcoin Earn → https://www.lombard.finance/app/earn

Eligible deposit assets: LBTC, BTC.b, native BTC BARD incentives are available in the Bitcoin Earn strategy.

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This strategy is not available to U.S. or U.K. persons. Please review the full eligibility requirements and risk disclosures before depositing. Participation in yield strategies involves risk, including the potential loss of principal. This communication is for informational purposes only and does not constitute financial advice or an offer to buy or sell any financial instrument.