In a significant development for the cryptocurrency space, Lombard Finance has acquired the live on-chain infrastructure of BTC.b, a $538 million Bitcoin asset on Avalanche. This strategic move is set to expand the reach of BTC.b across major blockchain platforms, including Ethereum, Solana, and MegaEth, starting next year.
Lombard Finance’s Acquisition of BTC.b
The acquisition of BTC.b by Lombard Finance involves the takeover of its infrastructure, user base of 12,500 addresses, and existing integrations into the DeFi ecosystem. This includes major platforms such as Aave and GMX, signaling a substantial expansion of Lombard’s operations in the Bitcoin DeFi sector.
According to the plan, Lombard will migrate BTC.b to its decentralized protocol, which is backed by 15 institutional entities. This transition is scheduled to be completed by the fourth quarter of 2025. The integration of Chainlink’s cross-chain interoperability protocol for bridging and its proof of reserve for verifiable support will significantly enhance the security and performance of BTC.b.
Implications and Future Plans
Lombard’s acquisition of BTC.b is seen as a natural extension of its mission to make on-chain Bitcoin more usable and accessible. With BTC.b, Lombard expands its product suite with a permissionless, non-custodial, and institutionally backed asset. This move complements LBTC and provides on-chain users with an alternative to centralized, packaged BTC assets, as stated by Lombard co-founder Jacob Phillips.
For developers, the value proposition lies in Lombard’s Software Development Kit (SDK), into which BTC.b will be integrated natively. This integration will allow DeFi applications to integrate the asset with minimal minting and redemption fees, enhancing the overall usability of BTC.b across different platforms.
Lombard has assured a seamless transition for the existing BTC.b community and its integrations. The asset’s contract address, name, and current placements on protocols like Aave will remain unaffected, ensuring no disruption to current holders. Furthermore, Lombard plans to expand BTC.b’s reach beyond Avalanche by launching the asset on Ethereum mainnet, Solana, and MegaEth, supported by its integration into Lombard’s vault products used by major exchanges such as Binance and Bybit.
This strategic expansion signals a concerted push for both institutional and retail distribution of BTC.b, potentially increasing its adoption and usability across the cryptocurrency ecosystem. As the cryptocurrency market continues to evolve, moves like this acquisition by Lombard Finance underscore the growing interest in Bitcoin DeFi solutions and the push for more accessible, secure, and decentralized financial services.
For more information on this landmark deal and its implications for the future of Bitcoin DeFi, visit https://crypto.news/lombard-takes-over-538m-btc-b-in-landmark-bitcoin-deal/
