Flow Traders tests Lombard’s Bitcoin-backed stablecoin credit

Lombard Finance has launched its Bitcoin Onchain Credit Strategy with Flow Traders as an early institutional participant. Summary Flow Traders can borrow stablecoins while Bitcoin Earn deposits provide collateral coverage through Cap’s platform. Bitcoin holders receive underwriting premiums alongside vault returns, linking yield directly to institutional borrowing demand. Chainlink CCIP moves BTC.b from Avalanche into Ethereum, widening cross-chain access to the credit strategy. The product lets the market maker borrow stablecoins without posting its own collateral directly onchain. Instead, Bitcoin supplied through Lombard’s Bitcoin Earn vault provides separate collateral coverage through Cap’s credit platform. The model connects Flow Traders’ demand for stablecoin financing with Bitcoin holders seeking yield. Borrowing premiums paid by the trading firm flow to depositors whose assets support the credit. Lombard said the new allocation sits inside Bitcoin Earn, which has recorded more than $1 billion in deposits from over 38,500 users. Flow Traders borrows through Bitcoin depositors Flow Traders accesses stablecoins through Cap’s automated credit marketplace on Ethereum. Bitcoin E...