Assets
Lombard issues two Bitcoin-backed tokens that serve different purposes within the Bitcoin Capital Markets ecosystem. LBTC is a yield-bearing Bitcoin token whose underlying BTC earns income denominated in Bitcoin, while BTC.b provides a strict 1:1 non-yield Bitcoin wrapper.
LBTC, Lombard Bitcoin
LBTC (Lombard Bitcoin) is a yield-bearing, non-rebasing Bitcoin token. Each LBTC is backed by BTC held in custody, and the underlying Bitcoin earns income through a covered-call options strategy managed by Bitwise Investment Manager, LLC. Holders receive liquid, cross-chain Bitcoin exposure while their stack grows in Bitcoin terms, the idea being Bitcoin that earns more Bitcoin rather than income paid out in dollars.
What LBTC Is Now
Until 13 August 2026, the Bitcoin backing LBTC was staked to Babylon. From 17 August 2026, LBTC’s yield source is an institutional covered-call options strategy on Bitcoin, managed by Bitwise Investment Manager, LLC.
When you deposit BTC with Lombard you receive LBTC, a liquid ERC-20 token backed by the Bitcoin you deposited.
Active and Passive Allocations
LBTC’s backing is split into two allocations with different jobs. One earns; the other exists to fund redemptions, so you can get your Bitcoin back.
The active allocation is held at two qualified custodians, Anchorage Digital Bank and Kraken Institutional, in segregated accounts, under tri-party agreements. Bitwise holds discretionary trading authority only. Options are financially (cash) settled, so no Bitcoin ever leaves custody as a result of options activity. The passive allocation stays with Lombard’s existing multi-institution Security Consortium, isolated from the strategy, so redemptions do not depend on what the options book is doing.
How the Yield Strategy Works
A covered call is the right, sold to another party for an upfront premium, to buy Bitcoin at a fixed price by a fixed date; the Bitcoin stays in custody the whole time. Bitwise sells calls against the active allocation, and the premiums, earned in BTC terms, accrue to LBTC through a rising exchange rate. The strategy uses no leverage, no puts, no lending, and no physical delivery, and it earns whether Bitcoin rises, falls, or trades flat because it is priced off Bitcoin’s volatility rather than its direction.
LBTC targets 2.5% net APY in BTC terms. That is a target, not a guarantee, and it varies with market volatility and how much of the backing is deployed. During the deployment ramp, yield runs below target and builds toward it. Full mechanics, risk limits, and the transparency dashboard are covered in Yield Strategy and Yield.
The Exchange Rate
LBTC uses a non-rebasing model. Instead of minting additional LBTC to reflect yield, the exchange rate between LBTC and BTC moves with the value of the backing. When you first mint LBTC, 1 LBTC might equal 1.00 BTC. As the strategy accrues premium, that rate can appreciate, for example to 1.01 or 1.02. The rate is not fixed and is not guaranteed to rise in any given period; it reflects the value of the underlying backing, which includes the mark-to-market value of open options positions.
This design avoids token balance changes that can cause issues with DeFi integrations, and makes it straightforward to calculate your position’s value at any time.
Minting LBTC
To mint LBTC, deposit BTC through the Lombard application or via Bitcoin Connect integrations. The deposit is verified by the Security Consortium and Bascule Drawbridge before LBTC is minted to your specified address. Minting is available on Ethereum and other supported chains.
Redeeming LBTC
To redeem LBTC back to native BTC, initiate a redemption request through the Lombard application. The protocol burns your LBTC and sends native BTC to your specified Bitcoin address at the current exchange rate, within a window of up to 10 days. Redemptions are funded from the liquidity buffer first, and the window provides the operational runway for orderly processing. There is no gate or pause mechanism; redemption is made in native BTC but is not instant.
The Strategy Manager
Bitwise Investment Manager, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission and is registered with the Commodity Futures Trading Commission as a commodity pool operator and commodity trading advisor. Bitwise Investment Manager, LLC is a wholly owned subsidiary of Bitwise Asset Management, Inc. (“Bitwise”), a global crypto asset manager with more than $9 billion in client assets. Since 2017, Bitwise has established a track record of excellence helping investors understand and access the opportunities in crypto. Bitwise manages a suite of over 70 investment products in the U.S. and Europe, spanning ETPs, index funds, alpha and SMA strategies, and staking solutions. The Bitwise team of over 175 technology and investment professionals is backed by leading institutional investors and has offices in San Francisco, New York, and London.
LBTC Fees
| Fee Type | Amount |
|---|---|
| Minting | Free (Ethereum mints deduct a small LBTC network fee) |
| Protocol Rewards Fee | 20% of strategy gains, subject to a high-water mark |
| Protocol Operating Fee | None; the liquidity buffer is never charged |
| Redemption Fee | 0.0001 LBTC |
| Minimum Deposit | 0.0002 BTC |
The 2.5% net yield target is quoted after fees.
LBTC Key Facts
| Property | LBTC |
|---|---|
| Token standard | Non-rebasing ERC-20; yield accrues via a rising exchange rate |
| Backing | Bitcoin held in institutional and Security Consortium custody |
| Target net yield | 2.5% net APY targeted in BTC terms (variable, not guaranteed) |
| Yield source | Covered-call options strategy managed by Bitwise Investment Manager, LLC. |
| Active allocation | Target 50-60% of backing |
| Passive allocation | 40–50% of backing, held in the Security Consortium |
| Protocol rewards fee | 20% of strategy gains (high-water mark); no Protocol operating fee |
| Redemption | To native BTC at the current exchange rate, funded from the buffer first, up to a 10-day window |
| Availability | 10 chains, 50+ DeFi protocols |
Note: The LBTC yield strategy and direct mint and redeem are not available to US or UK persons, or to other restricted jurisdictions. See the LBTC yield disclosure and Terms of Service for the full restricted-jurisdiction list before participating.
Where to Use LBTC
LBTC is integrated across major DeFi protocols on multiple chains:
- Lending: Aave v3, Aave v4, Morpho, Fluid, Euler, Juplend, Kamino
- DEX’s: Uniswap, Curve, Aerodrome, Meteora, Fluid
- Yield Strategies: Bitcoin Earn, Lombard Vaults, Pendle
- Restaking: EtherFi, Symbiotic
BTC.b, Bitcoin for DeFi
BTC.b is a non-yield Bitcoin token that maintains a strict 1:1 exchange rate with native BTC. Originally launched by Ava Labs, BTC.b was acquired by Lombard in October 2025 to complement LBTC with a simpler, non-yield Bitcoin representation.
How BTC.b Works
BTC.b is fully backed by native bitcoin held in reserve. When you deposit BTC, you receive an equivalent amount of BTC.b. When you redeem BTC.b, you receive exactly the same amount of native BTC (minus the redemption fee). There is no yield mechanism and no exchange rate fluctuation.
When to Use BTC.b
BTC.b is well-suited for scenarios where you need:
- Predictable pricing, The 1:1 rate simplifies calculations for trading and collateral
- Faster redemptions, No 10-day redemption window
- Simplicity, No yield mechanics to track or account for
- Short-term positions, When you need Bitcoin onchain temporarily and yield accrual is not a priority
BTC.b Fees
| Fee Type | Amount |
|---|---|
| Minting | Free (Ethereum mints deduct a small LBTC network fee) |
| Redemption | 0.0001 BTC |
| Minimum Deposit | 0.0002 BTC |
Contract Addresses
| Token | Network | Contract Address |
|---|---|---|
| LBTC | Ethereum | 0x8236a87084f8B84306f72007F36F2618A5634494 |
| LBTC | Base | 0xecAc9C5F704e954931349Da37F60E39f515c11c1 |
| LBTC | Solana | LBTCgU4b3wsFKsPwBn1rRZDx5DoFutM6RPiEt1TPDsY |
For a complete list of deployed contracts across all networks, see Smart Contracts.
Next Steps
- Yield Strategy, Full mechanics of the covered-call strategy, custody, and risk limits
- Yield, How yield works and where it comes from
- Infrastructure, Security Consortium, bridging, oracles, and Bitcoin Connect
- Access DeFi, Explore DeFi opportunities with LBTC and BTC.b
- Smart Contracts, Full list of deployed contracts across all networks