Binance has announced that Binance Labs has invested in Lombard, the creator of LBTC, a security-focused Bitcoin liquid staked token. This token allows individual and institutional holders to earn yield on their Bitcoin while leveraging their assets in decentralized finance (DeFi).
According to a press release by Binance, Lombard seeks to connect Bitcoin's economic value and security features with evolving opportunities in DeFi. The company has captured 40% of the Bitcoin Liquid Staked Token (LST) market and achieved a Total Value Locked (TVL) exceeding $500 million from over 12,500 users since its August launch.
In Phase 2 of its roadmap, Lombard is integrating LBTC with leading Ethereum DeFi protocols and plans to expand its availability across various Layer-1 and Layer-2 networks in Phase 3. This expansion aims to enhance connections to Babylon's Bitcoin Staking Protocol. Funding from Binance Labs will increase access to LBTC, known for its security measures, including a decentralized validator network, ongoing audits, a bug bounty program, and continuous threat monitoring.
According to Lombard, the company is developing LBTC as a liquid, yield-bearing token that is 1:1 backed by Bitcoin and designed for use in DeFi. The company aims to enhance Bitcoin's utility by providing built-in yield and facilitating access to DeFi opportunities.
Binance Labs focuses on supporting early-stage blockchain projects and fostering innovative ecosystems. Since its establishment in 2018, it has provided support and funding to various projects with the aim of growing the blockchain industry. As the venture capital arm and incubator of Binance, it identifies and invests in blockchain entrepreneurs, startups, and communities.