
Flow Traders has completed a pilot programme using Lombard's Bitcoin-backed stablecoin credit solution to explore new sources of liquidity for institutional trading.
The trial tested how Bitcoin (CRYPTO:BTC) can be used as collateral to access stablecoin credit without requiring the underlying digital asset to be sold.
Lombard's platform enables users to lock Bitcoin as collateral while borrowing stablecoins, allowing institutions to maintain Bitcoin exposure while accessing additional capital.
The pilot examined whether Bitcoin-backed credit could improve capital efficiency and support trading strategies in institutional digital asset markets.
Bitcoin-backed lending has become an increasingly important segment of decentralised finance as firms seek ways to generate liquidity without liquidating long-term holdings.
The successful pilot highlights continued institutional interest in expanding the use of Bitcoin beyond simple ownership into broader financial and lending applications.
At the time of reporting, Bitcoin price was $65,403.38.