Lombard Launches High-Yield LBTC Token on Solana

Bitcoin DeFi company Lombard Finance announced on Thursday the launch of its yield-bearing asset protocol on Solana's Layer 1 blockchain, solidifying the collaboration between the two chains. Lombard, a proponent of LBTC, the largest Bitcoin-based yield token, will integrate the asset with Solana’s leading decentralized applications, including Jupiter, Drift, Kamino, and Meteora, from day one. According to Lombard's statement, "This integration brings the first yield-bearing Bitcoin asset to Solana at scale, introducing LBTC's $1.5 billion circulating supply and approximately 1% BTC-denominated yield to one of the most vibrant ecosystems in crypto." The initiative is powered by LayerZero, an interchain blockchain communication protocol, along with the RedStone Oracles system, compatible with both EVM and non-EVM chains like Ethereum, Polygon, Avalanche, TON, Berachain, Unichain, and Manta Network. Jacob Phillips, co-founder of Lombard, stated, "Bitcoin is the most important asset of our generation, and integrating it into Solana unlocks immense opportunities. LBTC showcases the potential for Bitcoin to yield returns, be composable, and gain genuine market access. Solana’s exceptional performance provides an ideal environment for Bitcoin to transform into productive capital, enabling new DeFi strategies for BTC holders." Developed by Lombard, LBTC is a liquid-staked Bitcoin token backed 1:1 by BTC and allows for yield generation and cross-chain DeFi participation while preserving Bitcoin's security and liquidity. Lombard claims LBTC is the fastest-growing yield-bearing token in crypto, achieving $1 billion in total value locked (TVL) in just 92 days. Currently, the token boasts over $8 billion in total value locked according to DeFiLlama. Lombard's platform is built on Babylon, another initiative linked to Binance that focuses on Bitcoin staking, with LBTC symbolizing Babylon-staked Bitcoin. Earlier this month, Lombard raised $6.75 million through a community sale of the BARD token, valuing the company at $450 million. The funds will aid the protocol's development and support the Liquid Bitcoin Foundation, responsible for governance oversight, partnerships, research, and grants. Founded in 2024, Lombard previously secured $17 million in seed funding, led by Polychain Capital, with contributions from Franklin Templeton, Bybit, YZi Labs (formerly Binance Labs), and others. Early support came from the ICO platform Buidlpad, initiated by Erick Zhang, who conducted the BARD sale. Disclaimer: The Block is independently operated to deliver news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block. This article serves informational purposes only and should not be construed as legal, tax, investment, financial, or any other advice.