Lombard Finance Launches Bitcoin Collateral Credit Product... Flow Traders Joins as Pilot Partner

Lombard Finance, a Bitcoin financial products startup, has launched a new product called 'Bitcoin On-Chain Credit Strategy.' Global trading firm Flow Traders is participating as a pilot partner. According to a recent report by The Block, this product enables Flow Traders to borrow stablecoins for market-making purposes without depositing their own on-chain collateral. Instead, Bitcoin held in Lombard's Bitcoin yield product acts as collateral via a structured arrangement on a private credit platform. Michael Lee, Flow Traders' head of digital assets, stated, 'Liquidity providers like Flow Traders support digital asset trading through stablecoin funding. Lombard's Bitcoin on-chain credit strategy connects Bitcoin holders with institutional funding activities, showing low correlation to DeFi market conditions based on institutional demand.' Bitcoin Yield is Lombard's product where users deposit tokens like LBTC, BTC.b, WBTC, or native BTC to receive BTCe receipts. Currently operated by Centora, a specialized fund manager. Founded in 2024, Lombard previously raised $17 million in seed funding led by Poly Chain Capital, with participation from Franklin Templeton, Binance Labs (now YZi Labs), and others.