Lombard Finance launches Bitcoin onchain credit strategy with Flow Traders as pilot partner

Lombard Finance is bringing institutional Bitcoin lending on-chain, and it has picked Flow Traders to prove the concept works. The company launched its Bitcoin Onchain Credit Strategy on July 23, 2026, giving regulated firms a way to post Bitcoin as collateral and borrow stablecoins through a private underwriting structure on Cap, an automated credit marketplace. Flow Traders, one of the more recognizable names in institutional digital asset trading, serves as the pilot partner for the rollout. What Lombard is actually building The mechanics run on two token types. Lombard’s LBTC is a liquid-staked Bitcoin token, and BTC.b is a wrapped Bitcoin variant that lets the asset move across different blockchain environments. Chainlink’s Cross-Chain Interoperability Protocol, known as CCIP, handles the plumbing between networks, and Lombard has already migrated more than $1B in assets through it. Jacob Phillips, Lombard’s CEO, put it plainly. Asset managers need reliable access to stablecoin borrowing in DeFi markets, and the existing infrastructure has not delivered that in a way regulated firms can actually use. The market Lombard is entering Bitcoin-based lending is not a small niche. Th...