Lombard Unveils Bitcoin Smart Accounts to Mobilize Institutional Holdings
The platform aims to enable institutions to deploy custodied Bitcoin as onchain collateral while maintaining legal ownership and existing custody arrangements.
Lombard has announced plans to introduce Bitcoin Smart Accounts this quarter, a solution designed to address the problem of idle institutional Bitcoin holdings by allowing custodied assets to function as onchain collateral without custody transfers [1].
The system will issue a receipt token called BTC.b that provides onchain recognition of Bitcoin held in institutional custody, enabling access to lending and liquidity platforms while preserving existing custody structures [1].
According to Lombard co-founder Jacob Phillips, approximately $1.4 trillion in Bitcoin currently sits dormant, with only around $40 billion actively deployed in decentralized finance. Phillips noted that institutions previously faced a difficult choice between keeping Bitcoin secure in custody or moving it to wrapped versions and centralized services to generate yield [1].
Morpho will launch as the initial liquidity partner for the platform, selected for its institutional lending capabilities and experience with Bitcoin-backed lending products. The infrastructure is being built as an open system to accommodate additional DeFi protocols as institutional demand develops [1].
Lombard, founded in 2024, is currently conducting pilot programs with undisclosed institutional clients including asset managers and corporate treasuries [1].
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