.jpg "Lombard Secures Binance Labs Funding for Bitcoin DeFi")
[9:10 PM · Oct 16, 2024] – Lombard, a pioneering platform connecting Bitcoin to decentralized finance (DeFi), has announced a strategic investment from Binance Labs, the venture capital arm of Binance. This funding follows a successful seed round in July 2024, where Lombard raised $16 million, and an additional $1 million raised in October 2024. This latest investment will further accelerate the development and adoption of LBTC, Lombard's flagship product and a security-first Bitcoin liquid staked token (LST). LBTC allows Bitcoin holders to earn yield on their BTC while simultaneously leveraging it within the DeFi ecosystem.
Unlocking Bitcoin's DeFi Potential with LBTC
Lombard is addressing a significant market need by bridging the gap between Bitcoin's vast economic value and the dynamic opportunities within DeFi. Currently, a large portion of Bitcoin remains idle, missing out on the potential for yield generation and other DeFi activities. LBTC solves this problem by providing a 1:1 representation of staked Bitcoin, enabling users to hold Bitcoin as a store of value while simultaneously earning rewards, participating in staking, trading, and engaging with various DeFi protocols.
Since its launch in August 2024, Lombard has rapidly captured a significant share of the Bitcoin LST market. According to data from Dune Analytics, Lombard holds over 40% of the market, with a Total Value Locked (TVL) exceeding $500 million (equivalent to 8,500 BTC) and over 12,500 users. Demonstrating its commitment to connecting Bitcoin to DeFi, over 60% of the total LBTC is actively powering yield strategies on platforms like Pendle, facilitating institutional borrowing with Maple Finance, and enabling lending on Morpho and ZeroLend. Furthermore, Lombard is at the forefront of innovation, partnering with ether.fi to bring the first Bitcoin Liquid Restaked Token to market.
Binance Labs Investment Fuels Expansion and Cross-Chain Integration
The investment from Binance Labs will be instrumental in expanding access to LBTC across new blockchain networks. This will enable users on various chains to stake their BTC and mint LBTC, further increasing the accessibility and utility of the token. Lombard is currently in Phase 2 of its roadmap, focusing on integrating LBTC with leading Ethereum DeFi protocols. Phase 3 will see LBTC expand to multiple Layer-2 chains and Layer-1 networks, alongside deeper integration with Babylon's Bitcoin Staking Protocol. As the largest contributor to Babylon, with over 7,100 BTC delegated, Lombard is playing a key role in the growth of the Bitcoin staking ecosystem.
Security and Decentralization at the Core
LBTC prioritizes security and decentralization through its decentralized validator network, known as the Security Consortium, which validates every transaction on the protocol. Multiple audits, an active bug bounty program, and 24/7 threat monitoring further enhance the security and robustness of the platform.
"We are excited to support Lombard’s vision of scaling LBTC across DeFi," said Andy Chang, Investment Director at Binance Labs. "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.”
Jacob Phillips, Co-Founder and Head of Strategy at Lombard, added, “We’re incredibly grateful to have Binance Labs on board as we continue to expand the adoption of LBTC as a new core primitive. Their support is invaluable in helping us connect with a global audience of Bitcoin holders eager to earn yield or leverage their assets in DeFi. We look forward to accelerating our growth and delivering on Lombard’s mission to unlock new opportunities for Bitcoin holders across the DeFi space.”
About Lombard
Lombard is dedicated to unlocking Bitcoin's potential within the DeFi ecosystem by building a universal standard for cross-chain, yield-bearing BTC without fragmenting liquidity. LBTC, Lombard's flagship product, is a liquid Bitcoin backed 1:1 by BTC, empowering users to hold Bitcoin as a store of value while actively participating in DeFi.
About Binance Labs
Binance Labs is the venture capital and incubation arm of Binance, the world's leading cryptocurrency exchange. Binance Labs is committed to empowering early-stage projects and driving the growth and development of the Web3 ecosystem.
Compiled by CMO Intern team
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