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 expand LBTC onto new chains. Jacob Phillips, Lombard’s co-founder and head of strategy, stated that the goal is to grow the decentralized finance (DeFi) landscape on Bitcoin by unlocking new opportunities for BTC holders.

LBTC’s Role in Decentralized Finance

Lombard launched its liquid staked token in August and is among the projects striving to bring DeFi benefits to Bitcoin holders. The platform’s DeFi on Bitcoin product has seen LBTC power yield strategies, institutional borrowing, and lending across platforms like Pendle, Maple Finance, and Morpho.

“Lombard’s approach to integrating Bitcoin with DeFi addresses a clear market need, and LBTC’s fast growth demonstrates user interest to unlock more utility from their Bitcoin holdings,” said Andy Chang, investment director at Binance Labs.

Current Statistics and Market Potential

According to recent data, Lombard’s total value locked (TVL) in LBTC stands at over $640 million. Additionally, the liquid staking token currently has over 13,000 holders.

The platform’s growth coincides with Bitcoin’s market cap rising to over $1.3 trillion. However, the BTC DeFi ecosystem is still valued at just over $1.3 billion, representing about 10% of Bitcoin’s market cap. This suggests that the DeFi market on Bitcoin remains largely untapped.

Unlocking Bitcoin Liquidity

To unlock idle Bitcoin liquidity, projects like Lombard and Solv Protocol offer BTC holders opportunities in staking, yield generation, and lending. These initiatives are crucial for broadening the utility and adoption of Bitcoin within the DeFi space.

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