logo

Lombard collaborates with Bitwise to activate $500 billion in institutional custody of BTC for yield and collateralized lending

By: rootdata|2026/03/25 03:42:00
0
Share
copy

Lombard and Bitwise Asset Management announced a partnership at the Digital Asset Summit in New York, offering a solution for institutions to earn yields and collateralize BTC lending without moving assets out of custody, targeting the scale of BTC assets under institutional custody.

Bitwise will develop yield strategies that combine DeFi lending with tokenized real-world assets, while the decentralized lending protocol Morpho will provide the infrastructure for BTC collateralized lending. The platform uses Bitcoin-native tools such as partially signed transactions and time locks to verify collateral, allowing positions to be represented on-chain without transferring or re-collateralizing the underlying assets.

Phillips stated that Bitcoin Smart Accounts can simultaneously reduce custody, cross-chain bridge, and counterparty risks. This solution is aimed at high-net-worth individuals, asset management firms, and corporate treasuries, with plans to launch in the second quarter of 2026 and will add more custodians and protocols to expand coverage.

Lombard estimates that approximately $500 billion in BTC is under institutional custody; DefiLlama data shows that the total locked value of BTC in DeFi is about $2.93 billion, with a market cap of approximately $1.4 trillion; as of the time of writing, Babylon Protocol's total locked value is about $2.8 billion, and Lombard's is approximately $744 million.

-- Price

--

You may also like

Tom Lee's Ethereum Thesis: Why the Man Who Called the Last Cycle Is Doubling Down on Bitmine

Tom Lee is emerging as one of Ethereum’s most influential supporters. From Fundstrat to Bitmine, his Ethereum thesis combines staking yield, treasury accumulation, and long-term network value. Here is why “Tom Lee Ethereum” has become one of crypto’s most watched narratives.

Naval personally takes the stage: The historic collision between ordinary people and venture capital

Naval personally stepped in as the chairman of the USVC Investment Committee. This SEC-registered fund launched by AngelList attempts to bring top private tech assets like OpenAI, Anthropic, and xAI to the general public with a $500 entry threshold. It is not just a new fund, but a structural experi...

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Contents

Popular coins

Latest Crypto News

Read more