Thomas Daniels
Binance Labs, the venture capital arm of Binance, has announced a strategic investment in Lombard, the blockchain project behind the Bitcoin liquid staking token (LBTC). This funding is set to accelerate the expansion of LBTC across additional blockchain networks.
Jacob Phillips, Lombard’s co-founder and head of strategy, emphasized that the company’s mission is to advance decentralized finance (DeFi) within the Bitcoin ecosystem by creating new opportunities for BTC holders. Since its launch in August, Lombard’s liquid staking token has aimed to enhance the utility of Bitcoin in DeFi markets.
LBTC is already fueling a range of financial strategies, including yield generation and institutional lending, through platforms like Pendle, Maple Finance, and Morpho. Lombard’s focus on integrating Bitcoin with DeFi solutions addresses a growing demand in the market, according to Andy Chang, investment director at Binance Labs. He noted that the rapid adoption of LBTC underscores the interest among users to unlock additional value from their Bitcoin holdings.
As of the latest data from Dune Analytics, Lombard’s LBTC has amassed over $640 million in total value locked (TVL), with more than 13,000 holders. This surge in activity coincides with Bitcoin’s market capitalization surpassing $1.3 trillion.
However, the DeFi landscape for Bitcoin remains relatively untapped, with the total market size reaching just over $1.3 billion, or roughly 10% of Bitcoin’s market cap. Projects like Lombard and Solv Protocol are seeking to capitalize on this gap by providing BTC holders with new opportunities for staking, yield farming, and lending.
