Lombard Finance launches Bitcoin-backed stablecoin loans with Flow Traders as pilot partner

Lombard Finance introduced its Bitcoin Onchain Credit Strategy, allowing regulated institutions to borrow stablecoins using Bitcoin as collateral via a private underwriting structure on the Cap marketplace. Flow Traders is the pilot partner for this initiative, which uses Lombard’s LBTC and BTC.b tokens and Chainlink’s CCIP for cross-chain asset movement. This launch targets the $4.31 billion Bitcoin lending market, offering institutions a more reliable and cross-chain accessible DeFi borrowing option. The success of this strategy depends on the robustness of the cross-chain infrastructure, especially during market stress events.