Binance’s venture capital and incubation arm has invested in Lombard, the crypto project behind the Bitcoin liquid staking token LBTC.
This investment will help Lombard expand LBTC to new chains. The goal is to grow the decentralized finance environment on Bitcoin (BTC) by opening up new opportunities for BTC holders, Jacob Phillips, co-founder and head of strategy at Lombard, said in the announcement. said.
Lombard launched a liquid staking token in August and is one of the projects aiming to bring the benefits of decentralized finance to Bitcoin holders.
The platform’s DeFi on Bitcoin products saw LBTC’s power yield strategy, institutional lending, and lending from Pendle, Maple Finance, and Morpho, respectively.
“Lombard’s approach to integrating Bitcoin and DeFi responds to a clear market need, and LBTC’s rapid growth is an opportunity for people to get more utility out of their Bitcoin holdings,” said Andy Zhang, investment director at Binance Labs. “This shows that users are interested in unlocking the power of technology.”
According to Dune data, Lombard’s total amount locked in LBTC is now over $640 million. Meanwhile, the Liquid Staking token has over 13,000 holders, according to details also shared by X.
The platform’s growth comes as Bitcoin’s market capitalization rises to more than $1.3 trillion.
However, the BTC DeFi ecosystem is still worth just over $1.3 billion. This represents about 10% of the market capitalization, suggesting that the decentralized financial market on mainstream blockchain networks is still largely untapped.
To unlock this idle Bitcoin liquidity, projects like Lombard and Solv Protocol make products like staking, yield generation, and lending available to BTC holders.
