Flow Traders Pilots Lombard’s Bitcoin-Backed Stablecoin Credit Strategy

Lombard Finance’s Bitcoin Earn is a meta-vault that allocates deposits of LBTC, BTC.b, WBTC and native bitcoin across multiple yield strategies. Managed by Sentora and built on Veda infrastructure, it gives holders BTCe receipt tokens while compounding returns. The new Bitcoin Onchain Credit Strategy adds institutional private credit to that mix, connecting bitcoin capital with stablecoin financing and offering a source of yield tied to market-making demand rather than only broader DeFi conditions.

On July 23, 2026, Lombard launched the strategy with global trading firm Flow Traders as its pilot partner. Flow Traders can borrow stablecoins for market-making without posting its own collateral onchain; bitcoin in the Bitcoin Earn vault instead provides coverage through Cap’s private-credit underwriting platform. The vault has attracted more than $1 billion from over 38,500 users. Underwriting premiums paid by Flow Traders flow to Bitcoin Earn depositors, while Chainlink CCIP supports BTC.b deposits from Avalanche into an Ethereum vault. Lombard did not disclose the pilot’s borrowing amount.