Lombard Finance launches a Bitcoin on-chain lending strategy, with Flow Traders as a pilot partner

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PANews, July 23 — According to The Block, Bitcoin financial product startup Lombard Finance announced the launch of a new product called “Bitcoin On-Chain Credit Strategy,” with global trading firm Flow Traders as its pilot partner. The product will enable Flow Traders to borrow stablecoins for market making without having to provide on-chain collateral. According to the announcement, the Bitcoin deposited into Lombard’s Bitcoin Earn yield product will be underwritten through Cap’s private credit platform, and the arrangement will be used as collateral.

Per its documentation, Bitcoin Earn is Lombard’s Bitcoin yield product. It is designed to allow users to deposit tokens such as LBTC, BTC.b, WBTC, or native BTC into a single vault operated by a professional manager, Sentora, and supported by Veda infrastructure, in exchange for BTCe receipt tokens. Bitcoin Earn operates using a so-called meta-vault or fund-of-funds architecture for Bitcoin yield, in which the Bitcoin on-chain credit strategy is merely one configuration.

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