Lombard Finance has acquired the live on-chain infrastructure of BTC.b, a $538 million Bitcoin asset on Avalanche. The company plans to channel this flow across Ethereum, Solana and other major chains starting next year.
Summary
- Lombard Finance acquires BTC.b, a $538 million Bitcoin asset on Avalanche, along with its infrastructure and user base of 12,500 addresses.
- The company plans to migrate BTC.b to its decentralized protocol, secured by 15 institutional entities, by the fourth quarter of 2025.
- BTC.b will expand beyond Avalanche to Ethereum, Solana and MegaEth, with integration into Lombard’s vault products used by Binance and Bybit.
The Bitcoin DeFi protocol Lombard Finance will be released on October 30 announced the acquisition of the core infrastructure behind BTC.b, effectively taking control of the leading Bitcoin representation on the Avalanche network.
The deal sees Lombard acquire the operational protocol, user base of more than 12,500 addresses, and established integrations within Avalanche’s DeFi ecosystem, including major platforms such as Aave and GMX.
Lombard’s Blueprint for Bitcoin Capital Markets onchain
Lombard’s acquisition of BTC.b goes beyond the acquisition of an existing token, with plans to migrate the core infrastructure of the bridged Bitcoin assets to its own protocol, which is secured by a decentralized consortium of 15 institutional entities.
This transition, scheduled for completion in the fourth quarter of 2025, will also integrate Chainlink’s Cross-Chain Interoperability Protocol for bridging and Proof of Reserve for verifiable support, marking a substantial upgrade in security and capabilities over the current state.
“Acquiring the BTC.b infrastructure is a natural extension of Lombard’s mission to make Bitcoin more useful and accessible on onchain. With BTC.b, we are expanding our product suite with a permissionless, non-custodial, and institutionally backed asset that complements LBTC and provides onchain users with an alternative to centralized, packaged BTC assets,” said Jacob Phillips, co-founder of Lombard.
For developers, the value proposition lies in Lombard’s Software Development Kit. The plan is to natively integrate BTC.b into this toolkit, allowing DeFi applications to integrate the asset with minimal coin and exchange fees.
For the existing BTC.b community and its integrations, Lombard has promised a seamless transition. The asset’s contract address, name, and current placements within protocols such as Aave remain untouched, ensuring no disruption to current holders.
Lombard also plans to expand BTC.b’s reach far beyond Avalanche. The protocol confirmed plans to introduce the asset to Ethereum Mainnet, Solana and MegaEth. This cross-chain expansion will be strengthened by including BTC.b into Lombard’s vault products, already used by major exchanges such as Binance and Bybit, signaling a joint push for institutional and retail distribution.
