Lombard Finance Launches LBTC Token With 1% APY, $1 Billion TVL, Backed by Polychain and Franklin Templeton Across Multiple Chains

Lombard Finance, a Bitcoin-focused decentralized finance (DeFi) project incubated within Polychain, has made notable strides in integrating Bitcoin liquidity into the DeFi ecosystem. The platform enables native Bitcoin staking without the need for cross-chain bridges through its Babylon protocol, positioning Bitcoin as a yield-generating asset rather than just digital gold. Lombard’s native yield-bearing token, LBTC, has rapidly achieved a total value locked (TVL) of $1 billion within 92 days, surpassing the staking growth rate of traditional Ethereum assets. The project supports multiple major blockchains, including Ethereum, Base, Sui, BNB Chain, and recently launched LBTC on Solana with an approximate annual percentage yield (APY) of 1%. Backed by prominent institutional investors such as Polychain, Franklin Templeton, Binance, and OKX, Lombard aims to become a foundational infrastructure in the Bitcoin finance (BTCFi) space, with ambitions comparable to Tether and Circle’s roles in stablecoins. Despite some skepticism about the BTCFi sector’s valuation and future, Lombard continues to expand its ecosystem and liquidity offerings, exemplified by integrations like YBTC.B liquidity on the Sui blockchain powered by Bitlayer Labs. Additionally, related developments include Lygos Finance unveiling a non-custodial Bitcoin-backed lending platform utilizing Discrete Log Contracts (DLCs).

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