Flow Traders to tap Bitcoin on-chain credit through Lombard Finance

Flow Traders (Euronext: FLOW) will become the pilot partner of Lombard Finance for its new Bitcoin Onchain Credit Strategy. On-chain BTC lending is still relatively small, and Lombard plans for an expansion with large-scale institutional platforms. 

Flow Traders, a leading trading firm, liquidity provider, and market maker, will be able to borrow stablecoins and access on-chain markets, which were previously difficult to access for institutional clients. 

Lombard Finance has taken steps to make on-chain lending smoother and more accessible, allowing institutions to post onchain collateral more efficiently. Lombard uses Chainlink’s CCIP interoperability tool, allowing cross-chain deposits of BTC.b, moving collaterals from Avalanche to Ethereum. 

Lombard Finance has also opened up its BTC lending strategy through its Bitcoin Earn program for other institutional and retail clients. 

As with other BTC lending tools, the Ethereum network is used for smoother transfers and cross-chain liquidity. The chief reason is that access to stablecoin loans is the most liquid on Ethereum and its compatible networks. This is the reason direct lending on Bitcoin never took off, as stablecoins are not running on Bitcoin’s network. 

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