Lombard has partnered with Bitwise Asset Management to offer institutional investors the ability to earn yield and borrow against Bitcoin without moving assets out of custody.
The platform uses Bitcoin Smart Accounts to connect custodial holdings with onchain finance, allowing institutions to access lending and yield strategies while maintaining control of their assets.
“The breakthrough is Bitcoin Smart Accounts—connecting two previously isolated worlds: institutional custody and onchain finance,”
Said Lombard CEO, Jacob Phillips.
Bitwise will develop yield strategies combining DeFi lending and tokenised real-world assets, while Morpho will provide the underlying lending infrastructure.
The system relies on Bitcoin-native tools such as partially signed transactions and timelocks to verify collateral, avoiding risks linked to bridging or rehypothecation.
The offering is expected to launch in the second quarter of 2026 and targets asset managers, corporates, and high-net-worth investors seeking to generate returns on idle Bitcoin.
Lombard estimates that around $500 billion in Bitcoin held in institutional custody could be unlocked for yield generation, highlighting a growing shift toward making Bitcoin productive capital.
At the time of reporting, Bitcoin price was $70,619.40.