Lombard and Bitwise Collaborate to Enhance Bitcoin Lending for Institutions
- Lombard partners with Bitwise Asset Management to create Bitcoin Smart Accounts, allowing institutions to earn yield on Bitcoin without moving assets out of custody.
- The initiative aims to unlock approximately $500 billion in Bitcoin currently held in institutional custody.
- The lending infrastructure will utilize decentralized finance (DeFi) strategies and tools like partially signed transactions and timelocks for collateral verification.
- The rollout is expected in Q2 of 2026, targeting high-net-worth individuals and corporate treasuries.
- Currently, Bitcoin’s total value locked in DeFi stands at roughly $2.93 billion, a small fraction of its $1.4 trillion market capitalization.
This partnership seeks to bridge the gap between institutional custody and onchain finance, addressing risks that have historically limited Bitcoin lending options for institutions.
With an estimated $500 billion in institutional Bitcoin, this development could significantly shift how institutions leverage their holdings for yield generation without exiting custody arrangements.
