Lombard looks to link institutional custody to onchain finance
The product will let institutions use custodied Bitcoin as onchain collateral without moving assets or transferring control, with Morpho set as the initial liquidity partner.
Lombard said it plans to launch Bitcoin Smart Accounts, designed to allow Bitcoin held in institutional custody to be used as onchain collateral without moving the asset or transferring control to a third party.
According to an announcement shared with Cointelegraph, following a launch this quarter, custodied Bitcoin will be recognized onchain through a receipt token, BTC.b, enabling institutions to access lending and liquidity venues while retaining legal ownership and existing custody arrangements.
Lombard said the framework targets asset managers, corporate treasuries and other institutional holders whose Bitcoin (BTC) remains idle in qualified custody. Pilots are underway with select institutional clients, though Lombard has not disclosed customer names or transaction volumes.