Lombard to Launch Bitcoin Smart Accounts for Institutional Custody
- Lombard plans to launch Bitcoin Smart Accounts, allowing institutional custody Bitcoin to be used as onchain collateral.
- Custodied Bitcoin will be recognized onchain via a receipt token, BTC.b, facilitating access to lending and liquidity without transferring control.
- Approximately $1.4 trillion in Bitcoin remains idle, with only about $40 billion active in DeFi.
- Morpho has been selected as the initial liquidity partner for the platform.
- Founded in 2024, Lombard focuses on developing infrastructure for using Bitcoin in DeFi while maintaining custody.
The introduction of Bitcoin Smart Accounts aims to unlock the potential of idle Bitcoin held by institutional investors, enhancing participation in onchain finance without sacrificing custody security.
With around $1.4 trillion in BTC currently inactive, Lombard’s initiative could significantly change how institutions engage with Bitcoin and DeFi. (Source)
