- Binance Labs has invested in Lombard, aiming to bolster the adoption and expansion of LBTC, a liquid staked Bitcoin token (LST) that allows Bitcoin holders to earn yield through DeFi.
- Lombard’s roadmap includes integrating LBTC with top Ethereum DeFi protocols and expanding to multiple Layer-2 and Layer-1 chains.
Binance Labs has invested in Lombard, the developer behind LBTC—a liquid staked token (LST) designed to enable Bitcoin holders, from retail investors to institutions, to earn yield while utilizing their assets in DeFi ecosystems.
Since its launch in August, Lombard has swiftly captured 40% of the Bitcoin LST market, boasting over $500 million in Total Value Locked (TVL) or approximately 8,500 BTC, with a user base surpassing 12,500, according to data from Dune.
The LBTC token has found traction among DeFi enthusiasts, with over 60% of its supply actively deployed in yield strategies on platforms like Pendle, institutional borrowing through Maple Finance, and lending services with protocols such as Morpho and ZeroLend.
Lombard’s collaboration with Babylon, a decentralized Bitcoin staking protocol, is central to its mission to link Bitcoin’s economic potential with the expanding DeFi landscape. By integrating LBTC into Babylon’s platform, Lombard has become a major player, currently holding the largest delegation on Babylon’s network with over 7,100 BTC. This partnership marks a significant step toward Lombard’s goal of turning Bitcoin into a productive asset within DeFi.
The next phase of Lombard’s growth, fueled by Binance Labs’ funding, aims to expand LBTC’s footprint across new blockchain networks. This includes integration with major Ethereum DeFi protocols and plans to bring LBTC to multiple Layer-2 solutions and other Layer-1 blockchains. The investment aligns with Lombard’s strategic roadmap to boost accessibility and enhance the utility of Bitcoin across a broader range of decentralized applications.
Lombard’s efforts stand out in a crowded market due to their emphasis on security and decentralization. LBTC transactions are validated by a decentralized validator network known as the Security Consortium, aimed at ensuring robust security standards. Additionally, Lombard maintains rigorous security measures, including multiple audits, a continuous bug bounty program, and round-the-clock threat monitoring to protect user funds and ensure protocol integrity.
The partnership with Binance Labs signals growing institutional interest in solutions that extend Bitcoin’s utility beyond mere holding.
Andy Chang, Investment Director at Binance Labs, said, “We are excited to support Lombard’s vision of scaling LBTC across DeFi. At Binance Labs, we are committed to championing early-stage projects like Lombard that have the potential for meaningful, sustainable impact on the Web3 ecosystem. Lombard’s approach to integrating Bitcoin with DeFi addresses a clear market need, and LBTC’s fast growth demonstrates user interest to unlock more utility from their Bitcoin holdings.”
For Lombard, the backing from Binance Labs is a significant endorsement as it seeks to broaden its user base and establish LBTC as a key building block in the DeFi ecosystem.
“We look forward to accelerating our growth and delivering on Lombard’s mission to unlock new opportunities for Bitcoin holders across theDeFi space,” Jacob Phillips, Co-Founder and Head of Strategy at Lombard, stated.
As LBTC prepares for wider availability and deeper integration with both Ethereum and other blockchain networks, Lombard aims to solidify its position as a leader in the Bitcoin staking space. This move could provide a pivotal moment for Bitcoin’s role in DeFi, offering a glimpse into a future where Bitcoin’s economic value is more directly connected to the broader Web3 ecosystem.