Today, Lombard Finance, the largest provider of Bitcoin (BTC) liquid staking tokens (LSTs) by market share, and industry-standard decentralized computing platform Chainlink, announced their partnership to promote a secure, scalable, decentralized BTC-based economy through Chainlink’s essential tokenization infrastructure and Lombard’s flagship LST, LBTC.
Lombard will integrate Cross-Chain Interoperability Protocol (CCIP), Proof of Reserve (PoR), and Price Feeds to help support secure markets around LBTC while enhancing its transparency and utility throughout the multi-chain ecosystem. These services leverage Chainlink’s industry-leading decentralized oracle network, which has enabled over $16 trillion in transaction value, to secure tokenized assets throughout their entire life cycle on virtually any blockchain.
LBTC is designed to connect BTC to decentralized finance (DeFi) by allowing users to stake, lend, and borrow BTC in a secure and decentralized manner. Built on institutional-grade infrastructure and backed by Babylon’s BTC staking protocol, Lombard’s platform is dedicated to unlocking the full potential of DeFi on BTC (BTCFi).
An official blog outlined how the partnership between Lombard and Chainlink will create opportunities for users, layer-2 networks, and blue-chip DeFi protocols to build new use cases for LBTC and announced Lombard’s plan to become a launch partner for an upcoming CCIP security-enhancing feature.
As the industry standard for cross-chain token and data transfer, CCIP achieves the highest level of cross-chain security and features a separate Risk Management Network that independently monitors for suspicious activity. Lombard will utilize CCIP to facilitate secure LBTC transfers across the Arbitrum, Base, and Solana mainnets.
PoR will enhance LBTC’s transparency by verifying its collateralization onchain in real time, while Price Feeds will procure highly accurate, tamper-proof market data that promotes LBTC’s adoption as a new core primitive in DeFi.
“Our partnership with Lombard signifies a shared vision for the future of BTCFi,” said Johann Eid, Chief Business Officer at Chainlink Labs. “This partnership will serve as the foundation for BTCFi’s future, setting a new standard for decentralized finance.”
“Chainlink’s decision to partner with Lombard speaks to our shared commitment to building institutional-grade infrastructure for Bitcoin’s integration into decentralized finance,” added Lombard co-founder Jacob Phillips.
“We’re leading the way in BTCFi, setting an industry-standard for how Bitcoin is collateralized, staked, and integrated into DeFi. With Chainlink CCIP, Proof of Reserve, and Price Feeds, we will securely scale BTCFi and rebuild decentralized finance atop Bitcoin, unlocking a host of new financial products.”
To learn more about Lombard Finance, visit their website, X, Telegram, and Discord.