Lombard has launched a new institutional credit strategy designed to generate Bitcoin yield from regulated firms borrowing stablecoins onchain.
Called the Bitcoin Onchain Credit Strategy, the product connects Bitcoin holders with institutional financing demand, allowing users to earn fixed annual premiums paid by borrowers including Flow Traders, a publicly traded market-making firm.
Introducing the Bitcoin Onchain Credit Strategy, opening access to institutional credit markets for Bitcoin holders.@FlowTraders is among the first institutional participants using the Strategy, contributing a fixed premium to borrow stablecoins onchain.
Built in partnership… pic.twitter.com/cdscgzu811
— Lombard (@Lombard_Finance) July 23, 2026
Unlike traditional DeFi lending, which typically requires borrowers to lock collateral into lending pools, Lombard separates collateral providers from institutional borrowers through a dedicated underwriting structure.
Bitcoin deposited into the strategy serves as collateral, enabling regulated institutions to access stablecoin credit while providing Bitcoin holders with a yield source linked to institutional borrowing rather than speculative DeFi incentives.
The strategy is integrated into Lombard’s Bitcoin Earn platform, joining its existing Sentora-managed money market allocation. The system is powered by Cap Protocol for institutional lending, Symbiotic for collateral management, and Chainlink CCIP for cross-chain interoperability.
According to Lombard, Bitcoin Earn has accumulated over $1 billion in deposits, more than 38,500 users, and delivers 3% to 4% net APY through multiple yield strategies.