Lombard and Flow Traders Debut Institutional Stablecoin Credit
Lombard Finance has introduced its Bitcoin Onchain Credit Strategy, partnering with Flow Traders as an early institutional participant. The strategy allows Flow Traders to borrow stablecoins while maintaining collateral coverage through Cap's platform.
The product separates the borrower from the collateral provider, with Bitcoin supplied through Lombard's Bitcoin Earn vault providing separate collateral coverage. This setup enables regulated, institutional trading firms to access on-chain credit for the first time, according to Lombard CEO Jacob Phillips.
Flow Traders executive Michael Lie stated that the strategy links Bitcoin holders with financing demand 'less correlated to DeFi market conditions.' The new allocation sits inside Bitcoin Earn, which has recorded more than $1 billion in deposits from over 38,500 users.