Lombard Finance Takes Over BTC.b Asset from Ava Labs
Lombard Finance, the Bitcoin DeFi protocol behind the liquid staking token LBTC, has acquired BTC.b � a bridged bitcoin asset and its underlying infrastructure � from Ava Labs. The deal is intended to extend Lombard's suite of bitcoin-based offerings and expand its position in the onchain bitcoin capital markets.
BTC.b Operations to Remain Unchanged on Avalanche
BTC.b, first launched by Ava Labs in 2022, is a permissionless, non-yield bitcoin asset integrated across several DeFi protocols on Avalanche, such as Aave, BENQI, and LFJ. Under the new arrangement, BTC.b will continue to operate on Avalanche with no changes to its contract, name, or existing integrations. Technical infrastructure and oversight will transition to Lombard Finance.
Ava Labs Refocuses on Avalanche Core Development
According to Ava Labs, the transfer enables the company to offload the costs and responsibilities of managing BTC.b's infrastructure. "We are offloading some costs and effort to running a very large piece of infrastructure and focusing on our core business � maintaining and improving the Avalanche blockchain," said Eric Kang, head of DeFi at Ava Labs.
Kang noted that Lombard is positioned to further develop BTC.b with added features such as custody solutions, better developer support, and multichain capabilities via the Lombard SDK.
Lombard Expands Bitcoin Asset Offerings
Lombard Finance's acquisition complements its existing yield-bearing bitcoin token, LBTC. The combination of LBTC and BTC.b positions Lombard as the only platform offering both yield and non-yield, permissionless bitcoin assets across multiple chains, according to co-founder Jacob Phillips.
"The Bitcoin DeFi market is still nascent with less than 1% of bitcoin�s total market cap active onchain. This acquisition positions Lombard to capture significant market share as institutional and retail adoption accelerates," Phillips said.
- BTC.b is permissionless and does not generate yield.
- LBTC is a yield-bearing token integrated with DeFi protocols.
Phillips also emphasized that BTC.b addresses a gap left by centralized alternatives like WBTC and cbBTC, which do not allow permissionless minting. This restriction can limit developer access, while BTC.b aims to offer broader integration via the Lombard SDK.
Transition Timeline and Terms
Talks between Lombard and Ava Labs began in the second quarter. The transaction is expected to close before the end of the year. The financial terms of the deal were not disclosed. Each company handled the transaction with internal legal and business teams and did not use banking advisors.
Going forward, Lombard plans to support BTC.b's development, increase its availability across chains, and introduce new features via its developer toolkit.
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