Lombard Finance, a startup offering bitcoin financial products, is launching a new product, the “Bitcoin Onchain Credit Strategy”. Global trading firm Flow Traders is taking part as a pilot partner.

A recent report by The Block said the product supports Flow in borrowing stablecoins for market-making without depositing its own onchain collateral. Instead, bitcoin deposited in Lombard’s Bitcoin Earn yield product serves as collateral through an underwriting structure operated on the CAP private credit platform.

Michael Lee (마이클 리), head of digital assets at Flow Traders, said, “Liquidity providers like Flow Traders efficiently support digital-asset trading businesses through stablecoin financing.” He added, “Lombard’s Bitcoin Onchain Credit Strategy connects bitcoin holders with institutional financing activity, and based on actual institutional demand it has low correlation with DeFi market conditions.”

Bitcoin Earn is Lombard’s bitcoin yield product. Users receive a BTCe receipt token when they deposit tokens such as LBTC, BTC.b, WBTC and native BTC into a single vault. Professional asset manager Centora currently operates the Bitcoin Earn vault.

Founded in 2024, Lombard previously raised $17 million in a seed funding round led by Polychain Capital. Franklin Templeton, Bybit and YZi Labs, formerly Binance Labs, participated.