Lombard and Bitwise Collaborate on Institutional BTC Custody Solutions

Lombard has partnered with Bitwise Asset Management to revolutionize the way institutions manage their Bitcoin holdings. The collaboration aims to unlock the potential of $500 billion worth of BTC under institutional custody, leveraging decentralized finance (DeFi) infrastructure to provide innovative lending and yield generation solutions.

The partnership combines Bitwise's expertise in developing yield strategies with Lombard's infrastructure for decentralized lending protocol Morpho. This synergy enables institutions to earn yields from DeFi lending while maintaining the security of their assets through on-chain representation without transferring or rehypothecating them.

Phillips emphasized that Bitcoin Smart Accounts can simultaneously reduce custody, cross-chain bridge, and counterparty risks, providing a secure and efficient solution for high-net-worth individuals, asset management institutions, and corporate treasuries. The platform is set to launch in the second quarter of 2026 with plans to expand coverage by adding more custodians and protocols.