Binance Labs invests in Bitcoin liquid staking project Lombard

Binance Labs, the venture capital and incubation arm of Binance, has invested in Lombard, the crypto project behind the Bitcoin liquid staking token LBTC. This investment aims to help Lombard expand its LBTC token to new blockchains and grow the DeFi landscape for Bitcoin holders.

Launched in August 2024, Lombard’s LBTC token allows users to unlock decentralized finance (DeFi) opportunities on Bitcoin. The platform has already powered yield strategies, institutional borrowing, and lending through platforms like Pendle, Maple Finance, and Morpho.

According to Jacob Phillips, Lombard’s co-founder, the goal is to expand Bitcoin’s DeFi utility, giving holders more ways to leverage their Bitcoin beyond traditional storage. The investment follows LBTC‘s fast growth, with total value locked (TVL) in LBTC surpassing $640 million and over 13,000 holders.

Despite Bitcoin’s market cap exceeding $1.3 trillion, the DeFi ecosystem on Bitcoin remains relatively small, valued at just over $1.3 billion—about 10% of its total market cap. This highlights a significant opportunity for growth in the space, which Lombard, along with other projects like Solv Protocol, is actively exploring by unlocking Bitcoin’s liquidity for staking, yield generation, and lending.