Binance invests in a Bitcoin liquid staking project

Binance’s venture capital and innovation arm invested in Lombard, the cryptocurrency initiative that created the Bitcoin liquid staking token LBTC.

The investment round will allow Lombard to spread LBTC onto new chains. Jacob Phillips, Lombard’s co-founder and head of strategy, stated that the goal is to expand the decentralized finance landscape on Bitcoin by providing new opportunities to BTC holders.

Lombard released its liquid staked token in August and is one of several companies attempting to offer Bitcoin investors the benefits of decentralized finance.
According to Dune statistics, Lombard’s total LBTC holdings are worth over $600 million. Meanwhile, the liquid staking token has over 13,000 holders.

The platform’s DeFi on Bitcoin solution has seen LBTC power yield strategies, institutional borrowing, and lending through Pendle, Maple Finance, and Morpho, respectively.

The platform’s growth has coincided with Bitcoin’s market capitalization soaring to more than $1.3 trillion.

However, the Bitcoin DeFi ecosystem is currently only valued at slightly more than $1.3 billion. This is around 10% of the market capitalization and indicates that the decentralized finance business on the flagship blockchain network still needs to be explored.

To unleash this idle Bitcoin cash, projects like Lombard and Solv Protocol enable BTC holders to participate in staking, yield creation, and lending, among other services.