Resolv and Lombard Forge Strategic Collaboration to Bolster Bitcoin Liquidity in Stablecoin Money Markets

Resolv, a decentralized finance (DeFi) protocol, and Lombard have entered into a transformative partnership to integrate Bitcoin (BTC) liquidity into the $300 billion stablecoin money market. This collaboration bridges the expansive on-chain Bitcoin economy, including Lombard’s $1.5 billion yield-bearing BTC holdings, directly with stablecoin ecosystems. The partnership establishes Lombard's LBTC as the inaugural Bitcoin-based asset within Resolv's BTC cluster, setting a new standard for Bitcoin's role in DeFi.

Bitcoin’s Untapped Potential in DeFi Protocols

Currently, Bitcoin represents approximately $30 billion in DeFi protocols, over 1% of its circulating supply. However, only $5 billion of this is actively generating yield. Comparatively, Ethereum (ETH) has achieved greater impact in DeFi, with 20% of its $500 billion market capitalization deployed in liquid staking and other DeFi mechanisms, totaling $100 billion. Bitcoin's slow uptake highlights the nascency of BTCFi (Bitcoin DeFi).

A recent survey released by GoMining in October 2025 highlights this latent potential. Among 700 Bitcoin holders across North America and Europe:

• 73% expressed interest in earning yield on their holdings.
• 42% sought liquidity access without selling Bitcoin.
• 77% admitted to never having used BTCFi platforms.

The barriers preventing Bitcoin’s seamless integration into DeFi largely stem from the absence of frameworks that maintain its inherent security while unlocking its yield potential. This partnership seeks to overcome these obstacles by giving Bitcoin holders new avenues to earn and enabling DeFi protocols to access premium collateral, enhancing liquidity and capital efficiency across the ecosystem.

Resolv BTCFi Cluster and Lombard’s Essential Role

Resolv has unveiled its BTCFi cluster, an innovative framework for allocating capital to Bitcoin-based assets and strategies across multiple EVM-compatible networks. Traditionally, BTCFi integrations limited Bitcoin to static collateral functions within lending markets or siloed yield-generation platforms. Resolv’s approach reinvents this by tokenizing Bitcoin’s utility layer into stablecoin-compatible formats, unlocking broader use cases for BTC within DeFi markets.

The total stablecoin market currently exceeds $300 billion, with leading DeFi lending platforms such as Aave, Morpho, Sparklend, Fluid, and Compound collectively holding $40 billion in stablecoin Total Value Locked (TVL). Integrating Bitcoin liquidity into this robust market can significantly amplify DeFi's reach and impact.

Lombard has positioned itself as a cornerstone contributor to the integration, sourcing over $3 billion in assets for on-chain liquidity and money markets, with 82% of LBTC actively utilized in DeFi protocols. LBTC's inclusion within Resolv’s BTC cluster ensures its yield integrates into Resolv’s proprietary stablecoin yield stack, known as USR. This enables users to leverage LBTC for borrowing, lending, and leveraged trading across major DeFi platforms operating on eight networks.

Enhanced Benefits for Users and Protocol Participants

This integration offers a suite of compelling benefits for Resolv users and protocol stakeholders. Bitcoin holders can now access new yield-generation opportunities through Resolv's USR portfolio. Leveraging automated liquidity management tools—such as borrowing WBTC by staking LBTC—users can achieve an estimated yield increase of 0.3–0.4% compared to previous options within their portfolios.

Moreover, $RESOLV stakers will benefit from increased protocol fees generated by higher utility yields. Additional incentives include the planned distribution of Lombard’s native protocol token, $BARD, to $RESOLV stakers, further enriching the ecosystem’s value proposition. Bitcoin, long considered a static or under-utilized asset in DeFi, transforms into a dynamic financial instrument within Resolv's architecture, offering both stability and ongoing earning potential for investors.

Expanding Bitcoin’s Role in the Future of DeFi

The roadmap for Resolv and Lombard’s collaboration signals even greater interoperability and innovation in the months ahead:

1. Two-Way Liquidity Channels
   Lombard's DeFi Vault will invest directly in Resolv’s USR assets, effectively linking capital flows between LBTC and stablecoin ecosystems. This integration fosters seamless interoperability between BTCFi assets and stablecoins.

2. Cross-Asset Lending Features
   Planned cross-asset lending functionalities will strengthen Resolv and Lombard’s collateral and borrowing frameworks. Users can design tailored strategies, such as borrowing USR against LBTC collateral or utilizing USR as collateral in BTCFi-centric financial arrangements.

3. Institutional Adoption & Off-Chain Integration
   LBTC’s eligibility as a collateral asset on major exchanges, such as Bybit, will bridge on-chain liquidity to off-chain markets, providing new utility opportunities for institutional and retail investors within and beyond DeFi.

4. Elevating Bitcoin’s Role in Institutional Offerings
   LBTC is set to become a collateral asset within Resolv’s institutional-grade USR products, reinforcing its position as a creditworthy and highly stable offering for institutional stakeholders.

5. Collaboration with Key Ecosystem Participants
   Resolv aims to expand Bitcoin DeFi infrastructure through partnerships with Babylon ecosystem contributors. These collaborations will ensure seamless onboarding of new users and unlock avenues for further institutional partnerships.

Through their shared vision, Resolv and Lombard are redefining DeFi’s landscape by introducing billions of dollars of Bitcoin liquidity to highly scalable and efficient on-chain solutions. This groundbreaking initiative paves the way for widespread BTCFi adoption, reshaping the market’s viability and propelling Bitcoin toward its full potential as a cornerstone of decentralized finance.