Lombard has successfully closed a $16 million seed funding round aimed at developing the Bitcoin restaking ecosystem, in collaboration with Babylon.
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Led by Polychain Capital, the round saw participation from BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital. Strategic partnerships with major exchanges such as Bitget, Bybit, and OKX were also established to aggregate new liquidity into their businesses.
Additionally, the funding round included commitments from prominent founders and executives from Allora, Altlayer, Babylon, BeraChain, Euler, Gearbox, Pendle, Ritual, Scroll, StakeStone, Seven Seas, and Zircuit.
Transforming BTC into a Yield-Bearing Asset
Lombard’s flagship product, LBTC, aims to transform Bitcoin from a mere store of value into a productive asset that flows into the web3 economy. LBTC is a liquid, yield-bearing representation of BTC that can move seamlessly across chains and decentralized finance (DeFi) platforms as collateral, without compromising security.
This initiative could unlock over $1.3 trillion in Bitcoin for lending, borrowing, and trading, offering new capital opportunities for Bitcoin holders and boosting liquidity for ecosystems and their protocols.
“Lombard’s launch is timely and pivotal. Our investment in Lombard demonstrates our belief in its potential to add immense value to the Web3 ecosystem by unlocking Bitcoin’s latent potential. Our commitment to Lombard represents a deeper belief in the leverage Bitcoin can have in catalyzing growth across the whole Blockchain space.”
Olaf Carlson-Wee, Founder of Polychain Capital
Expert Team Driving Innovation
Lombard’s team comprises experienced executives from Argent, Coinbase, and Maple, bringing extensive knowledge in starting, scaling, and operating companies in the DeFi space.
Luke Pearson, GP at Polychain Capital, emphasized the team’s capabilities, stating, “Polychain is excited to announce our incubation of Lombard, a liquid Bitcoin standard that aims to redefine the use cases of Bitcoin. Lombard aims to unify the liquidity of Bitcoin with LBTC and become the connective tissue between protocols, ecosystems, and the wider decentralized finance space.”
The seed funding round follows Babylon’s significant $70 million Series A investment. The Babylon Staking Protocol allows Bitcoin assets to be staked in a trustless and self-custodial manner, providing economic security for Proof-of-Stake (PoS) systems.
Through Babylon, native BTC can be staked to secure PoS systems and earn yield. Lombard unlocks liquidity for the staked BTC by issuing LBTC, which will be integrated across leading DeFi protocols on Ethereum Mainnet and popular L2 chains later in the year.
“Lombard’s cross-chain LBTC product taps into the vast pool of parked Bitcoin liquidity, enhancing the supply-side into Babylon’s Bitcoin staking protocol. We are pleased that Lombard has received significant funding so we can continue our close collaboration, fill a critical void in the market, and drive substantial growth.”
David Tse, Co-Founder of Babylon
LBTC surpasses similar tokens due to its native cross-chain functionality and broad ecosystem integration. As LBTC aggregates liquidity and finds novel use cases, it will drive significant growth, mirroring successful paths taken by projects like Lido, EigenLayer, and Ether.Fi in the Ethereum ecosystem.
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About Lombard
Lombard is at the forefront of integrating Bitcoin into the web3 economy, aiming to transform BTC into a yield-bearing asset that enhances liquidity across decentralized finance platforms. Through innovative products like LBTC, Lombard is paving the way for new financial opportunities and sustainable growth within the blockchain ecosystem.
About Babylon
BabylonChain provides economic security for PoS systems through trustless and self-custodial staking of Bitcoin assets. By collaborating with Lombard, Babylon aims to enhance the utilization of Bitcoin within the DeFi space, driving liquidity and growth.
About Polychain Capital
Polychain Capital is a premier investment firm focused on blockchain technology and digital assets. With a strong belief in the transformative potential of blockchain, Polychain supports innovative projects that drive the growth and adoption of decentralized technologies.
