Lombard to Launch Bitcoin Smart Accounts for Institutional Custody
- Lombard plans to launch Bitcoin Smart Accounts this quarter, allowing custodied Bitcoin to be used as onchain collateral.
- Custodied Bitcoin will be recognized onchain via a receipt token, BTC.b, enabling access to lending and liquidity venues while retaining legal ownership.
- Approximately $1.4 trillion in BTC is currently idle, with only about $40 billion active in DeFi.
- Morpho will be the initial liquidity partner, with plans for additional integrations over time.
- Founded in 2024, Lombard focuses on developing Bitcoin-focused onchain infrastructure and tokenized assets.
The initiative aims to address the challenge of idle Bitcoin by linking institutional custody with onchain finance solutions, enhancing liquidity options for asset managers and corporate treasuries.
With $1.4 trillion in BTC sitting idle, Lombard’s approach could significantly increase the utilization of Bitcoin within the financial ecosystem through innovative solutions like BTC.b.(Source)
