Bitcoin that underwrites institutional credit
Deposit BTC, LBTC or BTC.b. Your Bitcoin backs stablecoin borrowing by regulated trading firms, and they pay you a fixed premium for it.
- Live since
- July 2026
- Borrower
- Flow Traders
- Deposit assets
- BTC · LBTC · BTC.b
Credit yield, built differently.
Demand that isn't tied to DeFi cycles.
Credit demand is less correlated to DeFi conditions than lending-pool utilization or incentive emissions.
One layer, stacked on LBTC.
BTCoc is one layer. Depositing LBTC stacks the credit premium on top of LBTC's built in yield.
Terms you can read, not infer.
Terms are legible: fixed premium, defined LTV band, named counterparty, public parameters.
Opening access to private credit markets.
Previously available only in institutional over-the-counter credit markets, Bitcoin Onchain Credit Strategy makes credit premiums an accessible yield source to onchain Bitcoin holders.
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.
| Question | Lending pool | BTCoc |
|---|---|---|
| Who posts collateral | Borrower | Depositor |
| Who the counterparty is | Anonymous, pooled | Named, contracted |
| What sets the rate | Pool utilization | Bilateral agreement |
| What the rate responds to | DeFi conditions | Fixed premium |
| Collateral location | Shared pool | Dedicated vault |
“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.”
Who is on the other side.
Flow Traders is the inaugural borrower. It is a global market maker listed on Euronext Amsterdam under FLOW, regulated across multiple jurisdictions, and it publishes audited financials.
Flow Traders pays an underwriting premium for access to stablecoin liquidity. That premium flows directly to participants in Lombard’s Bitcoin Onchain Credit Strategy vault as Bitcoin-denominated yield.
- Type
- Global market maker
- Regulatory footprint
- Multiple jurisdictions
- Financials
- Audited, published
“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.”
What sits underneath.
Vault infrastructure. Consolidates deposits into LBTC, issues and accounts for vault shares, compounds the premium back into them.
Credit platform. Sources USDC and underwrites the loan.
Holds the LBTC collateral coverage under slashing conditions.
Cross-chain transport for BTC.b deposits from Avalanche.
How it works.
You deposit.
BTC, LBTC or BTC.b. Everything consolidates into LBTC.
LBTC enters a Symbiotic vault
under defined slashing conditions. This is the collateral coverage.
Cap underwrites and lends USDC
to the borrower against that coverage.
The borrower pays a fixed premium
in USDC, set by bilateral agreement, charged on the amount actually drawn.
The premium converts to LBTC
and compounds into your vault shares. Your position grows in Bitcoin terms.
Three ways in.
Long-term Bitcoin holders.
You are not selling. You want your stack to grow in Bitcoin terms without leaving Bitcoin. BTCoc pays in Bitcoin and compounds your position.
Deposit →Allocators and treasuries.
You need a named counterparty, defined terms and a return that does not depend on market direction. The borrower is listed, the premium is contracted, the parameters are published in full in the docs.
Read the docs →DeFi allocators.
You are comparing this to lending pools and looped strategies. The difference is that your return is priced by a bilateral agreement, not by pool utilization, and the collateral sits in a dedicated vault.
Read the docs →Questions, answered.
These are the questions that block a deposit, answered in order.
Where does the yield actually come from?
A fixed premium paid by the borrower to draw stablecoins against your collateral coverage. It is a credit payment, not an incentive, and not a trading return.
Do I keep Bitcoin exposure?
Yes. Deposits consolidate into LBTC, the premium is converted to LBTC, and your position compounds in Bitcoin terms.
What is the difference between depositing BTC and depositing LBTC?
The credit premium is the same. LBTC also carries its own active allocation, managed by Bitwise, so depositing LBTC stacks that return on top of the premium.
Why is live net APY below the target?
The premium is charged on the amount actually drawn, within the contracted loan-to-value band. Realized yield tracks utilization of the facility. Live figures are published in the app.
Can I lose Bitcoin?
Yes. Your deposit is collateral coverage subject to slashing conditions. If the loan-to-value breaches terms and is not cured, collateral is slashed. Full risk disclosure in the docs.
How fast can I withdraw?
Up to 21 days. There is a 5% liquidity buffer, but there is no guaranteed instant exit.
Who holds my Bitcoin?
It sits as LBTC in a Symbiotic vault under defined slashing conditions. Not with Lombard, and not with the borrower.
What happens if the borrower defaults?
The position is governed by the loan-to-value schedule: margin call at 80% with a 12 hour cure period, hard liquidation at 90%. Recovery is through the collateral, and depositors carry residual counterparty risk.
Who can deposit?
Not available to US or UK persons.
Your Bitcoin, on the lending side of an institutional trade.
Deposit BTC, LBTC or BTC.b. Earn a fixed premium paid in Bitcoin.
Bitcoin Onchain Credit Strategy is not available to US or UK persons. Target returns are not guaranteed. This is not investment advice. Full terms and risk disclosure in the documentation.