Polychain Capital Leads $16M Seed Round for Lombard’s Bitcoin Restaking Protocol

• Lombard secures $16M funding led by Polychain Capital to enhance the Bitcoin restaking ecosystem with LBTC integration.
• Lombard’s LBTC token unlocks liquidity for staked Bitcoin, enabling users to access liquidity while earning yields.
• Integration of LBTC into Ethereum DeFi protocols planned, boosting utility and opportunities for staked Bitcoin users.

Lombard, a Bitcoin restaking protocol, secured $16 million in seed funding which was led by Polychain Capital. This financing aims to enhance the Bitcoin restaking ecosystem. Lombard will partner with Babylon, a Bitcoin staking protocol, to achieve this goal as noted by Wu Blockchain in his recent Twitter post.

Besides Polychain Capital, the funding round saw participation from several other notable investors. These include BabylonChain, Inc., dao5, Franklin Templeton, Foresight Ventures, Mirana Ventures, Mantle EcoFund, and Nomad Capital.

Lombard issues a liquid and yield-bearing representation of staked Bitcoin using the token LBTC. This token helps unlock liquidity for users. Consequently, once a user stakes Bitcoin via Babylon, they receive LBTC, enabling them to access liquidity while earning yields.

Lombard’s ambition extends beyond its initial functionalities. The company plans to integrate LBTC across Ethereum DeFi protocols later this year. This integration will likely enhance the utility of staked Bitcoin, providing more opportunities for users in the DeFi space.

Additionally, the investment shows a strong belief in Bitcoin’s potential within the Web3 ecosystem. Olaf Carlson-Wee, founder of Polychain Capital, highlighted this in a statement. He said their support for Lombard is based on the belief that Bitcoin can drive growth across the entire blockchain space.

Additionally, this funding follows a significant investment in Babylon. On May 30, Paradigm, another prominent crypto-focused venture firm, led a $70 million fundraising round for Babylon. Polychain Capital also participated in this round, alongside Bullish Capital, Hashkey Capital, and others.

Lombard’s $16 million seed funding, led by Polychain Capital, marks a step forward in the evolution of Bitcoin restaking. The planned integration of LBTC into Ethereum DeFi protocols and the collaboration with Babylon are expected to bring substantial benefits to users. This move underscores the increasing recognition of Bitcoin’s potential to drive innovation and growth within the blockchain space.