Lombard Finance Acquires $538 Million BTC.b in Historic Bitcoin Transaction

Lombard Finance acquires bridged Bitcoin asset from Ava Labs.

Lombard Finance has successfully obtained the infrastructure for BTC.b, a Bitcoin asset valued at $538 million on the Avalanche network. The company intends to extend the use of this asset across Ethereum, Solana, and other major blockchain networks starting next year.

On October 30, Lombard Finance, a Bitcoin DeFi protocol, announced its acquisition of BTC.b's core infrastructure, taking control of a key Bitcoin representation on the Avalanche platform. This deal enables Lombard to absorb the operational protocol, which includes a user base of over 12,500 addresses and established connections within the Avalanche DeFi ecosystem, featuring prominent platforms like Aave and GMX.

Lombard's Vision for Bitcoin Capital Markets On-Chain

Lombard’s acquisition of BTC.b signifies more than just the takeover of an existing asset. The firm plans to migrate the core infrastructure of BTC.b to its own protocol, which will be enhanced by a decentralized consortium of 15 institutional entities. This transition is expected to be completed by the fourth quarter of 2025 and will incorporate Chainlink’s Cross-Chain Interoperability Protocol for bridging, along with its Proof of Reserve feature for verified backing. This upgrade will significantly enhance both security and functionality compared to the current system.

For developers, Lombard's Software Development Kit (SDK) offers an appealing value proposition. The plan includes the native integration of BTC.b into this toolkit, allowing decentralized finance (DeFi) applications to adopt the asset with minimal minting and redemption fees.

To ensure a smooth transition for the existing BTC.b community and its integrations, Lombard has committed to maintaining the asset’s contract address, name, and current positions within protocols like Aave. This will guarantee that current holders experience no disruptions.

Furthermore, Lombard has ambitions to broaden BTC.b's reach beyond Avalanche. The protocol has announced plans to launch the asset on Ethereum Mainnet, Solana, and MegaEth. This cross-chain expansion will be supported by incorporating BTC.b into Lombard’s vault products, which are already in use by major exchanges such as Binance and Bybit. This indicates a strategic push towards both institutional and retail distribution.

Key Takeaways

Lombard Finance has acquired BTC.b, a $538 million Bitcoin asset on the Avalanche network.
The acquisition includes operational control and a user base of over 12,500 addresses.
Lombard plans to migrate BTC.b’s infrastructure to its own, enhancing security and functionality.
The transition aims to integrate BTC.b into Lombard’s Software Development Kit, minimizing fees for developers.
Lombard intends to expand BTC.b’s availability to Ethereum, Solana, and other significant blockchains.

This development in the crypto space signifies a major shift in how Bitcoin assets can be utilized across multiple blockchains, providing new opportunities for both institutional and retail investors.