New structure allows Flow Traders to access stablecoin credit, via Cap, without posting collateral, unlocking a previously inaccessible market while delivering fixed, institutional-grade yield to Bitcoin holders
NEW YORK, July 23, 2026 — Lombard Finance, the Bitcoin finance protocol behind LBTC, BTC.b and Bitcoin Earn, today announced the launch of its Bitcoin Onchain Credit Strategy, with Flow Traders (Euronext: FLOW), a leading global trading firm, as the pilot partner. This Strategy allows Flow Traders to borrow stablecoins and access a market that has historically been difficult for institutional participants to access due to operational constraints associated with posting onchain collateral. By integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in the Strategy, Lombard is also enabling secure cross-chain deposits of BTC.b directly from Avalanche into the vault on Ethereum, unlocking multi-chain distribution. The Strategy is live and accepting deposits through Bitcoin Earn at lombard.finance/app.
Historically, accessing DeFi lending markets where posting onchain collateral in a pooled model is required to borrow assets was nearly impossible for institutional businesses. The Bitcoin Onchain Credit Strategy introduces a new model that will allow Flow Traders to access credit through an underwriting structure where Bitcoin supplied to Lombard’s Bitcoin Onchain Credit Strategy serves as collateral coverage.
Flow Traders will be able to borrow stablecoins through Cap to facilitate its digital asset market-making operations through a structure that does not require Flow Traders to post its own onchain collateral. Cap’s automated marketplace for private credit, which uses smart contracts rather than manual intervention to allocate access to capital, ensures each loan is independently vouched for and guaranteed and allows for unique use cases such as Lombard’s Bitcoin Onchain Credit Strategy to address the scalability and incentive alignment problems facing traditional private credit markets.
Lombard chose Chainlink CCIP to unlock cross-chain interoperability for the Strategy, based on the protocol’s industry-leading security and defense-in-depth architecture, including 16 independent node operators per bridge lane, rate limits that act as circuit breakers, and SOC 2 Type 2 compliance that meets the strict standards required by major financial institutions.
Jacob Phillips, Co-Founder and CEO of Lombard Labs, commented: “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.”
Through the Strategy, 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. Unlike traditional DeFi yield products, which rely on token incentives, leverage, or variable rate environments, the Bitcoin Onchain Credit Strategy is tied to a structural demand from institutional trading firms, offering a more stable and uncorrelated return profile.
Michael Lie, Global Head of Digital Assets at Flow Traders, added: “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.”
The Bitcoin Onchain Credit Strategy is built within Bitcoin Earn, Lombard’s meta-vault and the first fund-of-funds architecture for onchain Bitcoin yield, which has attracted over $1 billion in deposits from more than 38,500 users since launch. By combining this new fixed-premium underwriting strategy with existing allocations such as the Sentora-managed Bitcoin Money Market Strategy, Bitcoin Earn delivers diversified, risk-adjusted returns across market conditions while opening institutional-grade credit markets to both borrowers like Flow Traders and Bitcoin holders for the first time.
Benjamin Sarquis Peillard, Founder & CEO of Cap, added, “We created Cap to address structural issues with legacy private credit markets, specifically in incentive alignment, and liquidity. The fact that Flow Traders, one of the world’s leading global trading firms, is using our platform reflects the potential our platform has to compete in legacy markets.”
About Lombard Labs
Lombard Labs is a financial technology company. It operates as the principal service provider to the Lombard Finance Foundation, providing the research, engineering, and technical capability that powers the Lombard Finance protocol; including LBTC, BTC.b, Bitcoin Earn, the Lombard SDK and Bitcoin Smart Accounts.
About Lombard
Lombard is a leading Bitcoin finance protocol, with $3 billion in Bitcoin onboarded. Founded in 2024 and backed by Polychain Capital, Franklin Templeton, and Binance Labs, Lombard’s products enable Bitcoin holders, corporate treasuries, and financial institutions to earn yield on, borrow against, and deploy their Bitcoin onchain. Lombard’s infrastructure powers Bitcoin products for the users of Ledger, Binance, and Bybit, and integrates with Aave, Morpho, and 70+ DeFi protocols across 13 blockchains. Visit lombard.finance
About Cap
Cap is a private credit platform that provides principal protection for lenders by using blockchain technology to address the core problems facing legacy private credit systems. Cap’s novel automated credit marketplace ensures every loan is backed by onchain financial guarantees. Each loan has a dedicated underwriter who puts their own capital behind the decision, making honest underwriting the dominant strategy. Dollar depositors then earn a secured yield that’s insured by underwriters. This innovative approach to private credit mitigates the issues of scalability, incentive alignment, fraud, and illiquidity facing traditional markets. Cap’s investors include Franklin Templeton, Susquehanna, IMC Trading, and other legacy financial institutions. Today, the platform has $4B+ in cumulative volume, over $350M in deposits, and 5–7% annualized yield on dollar deposits.
Published in partnership with Lombard Labs
