Bitcoin financial products startup Lombard Finance (BARD) is launching a new product called the Bitcoin Onchain Credit Strategy with global trading firm Flow Traders (Euronext: FLOW) as a pilot partner.
The offering will enable Flow to borrow stablecoins for market-making without posting its own onchain collateral.
Instead, bitcoin deposited into Lombard’s Bitcoin Earn yield product will act as the collateral coverage through an underwriting setup run on Cap’s private-credit platform, according to an announcement on Thursday.
"Liquidity providers like Flow Traders use stablecoin financing to efficiently support their digital asset trading operations," Global Head of Digital Assets at Flow Traders Michael Lie said.
"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." Bitcoin-Backed Stablecoin Borrowing Bitcoin Earn is Lombard’s bitcoin yield product designed to enable users to deposit tokens like LBTC, BTC.b, WBTC, or native BTC into a single vault, currently operated by professional managers Sentora and powered by Veda infrastructure, in exchange for BTCe receipt tokens, according to its documentation.
