Lombard has received approximately $1 million in investment from Binance Labs. In terms of total value secured, Lombard is the most significant Bitcoin liquid staking platform, with more than $640 million in assets.
Binance Labs, the $10 billion venture capital and incubation branch of the crypto exchange Binance, has made an investment in Lombard Finance, a Bitcoin liquid staking platform.
Jacob Phillips, co-founder and director of strategy at Lombard, advised The Block that negotiations between Lombard and Binance Labs commenced “a couple of months ago.” Phillips declined to disclose the specifics of the Binance Labs investment round, stating that it was “very conventional.”
He also declined to disclose Lombard’s valuation in the most recent round, but he did mention that the startup’s total funding is currently in the $17 million range. That represents an increase from the $16 million pilot round that Binance Labs completed approximately four months ago, which suggests that Binance Labs has invested approximately $1 million.
Babylon, another company in the Binance Labs portfolio that specializes in Bitcoin staking, serves as the foundation for Lombard, a Bitcoin liquid staking platform. In the staking and restaking space, Binance Labs is an active investor in a variety of blockchain ecosystems, such as Bitcoin, Ethereum, Solana, and Berachain. The company has sponsored numerous platforms, including Puffer Finance, Renzo, Solayer, and Infrared.
Lombard has created LBTC, a liquid staking token for Bitcoin. Phillips stated that “LBTC represents Bitcoin staked into Babylon. It enables users to maintain the value of the original asset while earning a native yield from delivering economic security to networks via Babylon and participating in DeFi.”
Phillips stated that Lombard’s LBTC, which was introduced approximately two months ago, is currently being utilized as collateral for lending, borrowing, yield farming, and trading with DeFi protocols including Pendle, Maple Finance, Morpho, and ZeroLend. According to data from its website, Lombard’s current total value locked (TVL) exceeds $640 million.
“Lombard is motivated by the fact that the TVL in the ecosystem could more than double, facilitating sustainable market dynamics over time and catalyzing unprecedented development, if only 10% of Bitcoin’s $1.5 trillion market value transfers into DeFi,” Phillips stated.
Also Read: Tesla transmits $765 million in Bitcoin to accounts that remain undisclosed
Wallets