Binance Labs Invests in Lombard to Connect Bitcoin to DeFi

Main Takeaways:

• Binance Labs has invested in Lombard, the developer and distributor of LBTC, a security-first Bitcoin liquid staked token that allows both individual holders and large institutions to earn yield on their Bitcoin while leveraging their assets in DeFi.

• Binance Labs is committed to championing early-stage projects like Lombard that have the potential for meaningful, sustainable impact on the Web3 ecosystem.

Binance Labs has invested in Lombard, the developer and distributor of LBTC, a security-first Bitcoin liquid staked token (LST) that allows both individual holders and large institutions to earn yield on their Bitcoin while leveraging their assets in DeFi. Through its collaboration with Babylon, Lombard aims to bridge the gap between Bitcoin's economic value, security capabilities, and the dynamic opportunities within DeFi.

Since its launch in August, Lombard has grown to hold 40% of the Bitcoin LST market, with a Total Value Locked (TVL) of over $500 million or 8.5K BTC, from over 12,500 users, according to data from Dune. True to its mission to connect Bitcoin to DeFi, over 60% of the total LBTC is powering yield strategies on Pendle, institutional borrowing with Maple Finance, and lending on platforms like Morpho and ZeroLend. Lombard is also leading the charge in bringing the first Bitcoin Liquid Restaked Tokento market through its partnership with ether.fi.

Lombard is currently in Phase 2 of its roadmap, focusing on integrating LBTC with top Ethereum DeFi protocols. Phase 3 will see LBTC made available on multiple Layer-2 chains and Layer-1 networks, alongside deeper integration with Babylon's Bitcoin Staking Protocol. As of Babylon's latest Cap 2, Lombard is now the largest contributor on the platform, with over 7,100 BTC delegated to it.

With the new funding from Binance Labs, Lombard plans to expand access to LBTC across new chains, allowing users to stake BTC and mint LBTC. LBTC stands out for its robust security and decentralization, utilizing a decentralized validator network, the Security Consortium, to validate every transaction on the protocol. Additionally, Lombard employs multiple audits, an active bug bounty program, and 24/7 threat monitoring.

“We are excited to support Lombard’s vision of scaling LBTC across DeFi. 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,” said Andy Chang, Investment Director, Binance Labs. “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.”

“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 theDeFi space,” said Jacob Phillips, Co-Founder and Head of Strategy, Lombard.

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About Binance Labs

Binance Labs is the leading venture capital and incubator committed to empowering early-stage projects and driving the growth and development of the Web3 ecosystem. Since our founding in 2018, we have consistently focused on the long-term, and provided strategic support and funding to projects, regardless of market cycles.

As a chain- and sector-agnostic venture capital leader in the Web3 space, we back everything from infrastructure to application layers, and our focus has consistently been on tech innovation with meaningful product-market fit and sustainable revenue models.

Binance Labs’ portfolio covers over 250 projects from over 25 countries across six continents. More than 65 of Binance Labs’ portfolio companies are projects that have gone through our incubation programs. For more information, follow Binance Labs on X. 

About Lombard

Lombard connects bitcoin to decentralized finance, unlocking over $1.5 trillion in idle bitcoin liquidity. Acting as foundational infrastructure and catalyst within the Web3 ecosystem, it provides crucial liquidity to decentralized exchanges and platforms. Its flagship product, LBTC, enables bitcoin holders of all sizes to participate in DeFi, offering access to staking, yield generation, lending, borrowing, and trading. LBTC provides liquidity, and security with seamless cross-chain functionality, positioning it as a truly decentralized and versatile asset. Stay up-to-date with the latest developments by following Lombard on X.

Disclaimer: The information provided in this article is intended for informational purposes only and does not constitute investment advice, endorsement, analysis, or recommendations with respect to any financial instruments, investments, or issuers. This article may contain forward-looking statements which are by nature subject to risks and uncertainties. Investment in cryptocurrency and DeFi projects involves substantial risk, including the risk of complete loss. This article does not take into account the investment objectives, financial situation, or specific needs of any particular person and each individual is urged to consult their legal and financial advisors before making any investment decisions.