Kraken Backs Lombard's Shift to Institutional Yield Strategy

Lombard is transitioning its yield source from Bitcoin staking to an institutional covered-call strategy managed by Bitwise Asset Management, aiming for a net APY of 2.5% in Bitcoin terms.

Kraken Institutional is directly supporting this transition and will hold the Bitcoin backing the strategy in segregated, bankruptcy-remote accounts at qualified custodians, including Kraken.

This move reflects the growing trend of institutions viewing Bitcoin as productive collateral, rather than just a passive store of value. Kraken's Gurpreet Oberoi notes that custody, execution, and yield should work together seamlessly for institutional allocators.