{"id":867386,"date":"2025-08-23T21:13:39","date_gmt":"2025-08-24T02:13:39","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/23\/bitcoin-liquid-staking-gains-momentum-as-lombard-launches-bard-token-and-foundation\/"},"modified":"2025-08-23T21:13:39","modified_gmt":"2025-08-24T02:13:39","slug":"bitcoin-liquid-staking-gains-momentum-as-lombard-launches-bard-token-and-foundation","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/08\/23\/bitcoin-liquid-staking-gains-momentum-as-lombard-launches-bard-token-and-foundation\/","title":{"rendered":"Bitcoin Liquid Staking Gains Momentum as Lombard Launches BARD Token and Foundation"},"content":{"rendered":"
\n

Bitcoin Liquid Staking Gains Momentum as Lombard Launches BARD Token and Foundation<\/h2>\n

Lombard is attempting to make the world’s original cryptocurrency into a more productive asset for DeFi functions<\/h2>\n

Aug 23, 2025, 2:00\u202fp.m. <\/span><\/p>\n<\/div>\n

\n

For most of its history, bitcoin has been prized as digital gold: an asset to hold rather than use. That passivity has left trillions of dollars\u2019 worth of BTC sitting idle in wallets, disconnected from the yield strategies and composability that define decentralized finance (DeFi). <\/p>\n

The rise of liquid staking tokens promises to change that, positioning bitcoin not only as a store of value but as a productive asset integrated into onchain capital markets.<\/p>\n

Liquid staking refers to the process of uses offering their crypto to help secure a network, and receive a liquid, tradable token in return that represents their staked assets and can be used across DeFi while the original tokens continue earning staking rewards.<\/p>\n

Lombard Finance has emerged as one of the prominent projects in bitcoin liquid staking. Its flagship product, LBTC, is a yield-bearing token backed 1:1 by BTC. <\/p>\n

When BTC is deposited into the Lombard protocol, the underlying coins are staked, primarily via Babylon, a protocol enabling trustless, self-custodial bitcoin staking<\/a>. Users receive LBTC in return, which can be deployed across DeFi ecosystems while the original Bitcoin earns staking rewards.<\/p>\n

This dual functionality is key. Holders can keep exposure to bitcoin while using LBTC in lending, borrowing, and liquidity provision across protocols such as Aave, Morpho, Pendle, and Ether.fi. Designed for interoperability, LBTC moves across Ethereum, Base, BNB Chain, and other networks, preventing liquidity fragmentation and ensuring bitcoin can participate in a multi-chain DeFi environment.<\/p>\n

A market potentially worth billions<\/h2>\n

By mobilizing BTC’s dormant liquidity, Lombard and other liquid staking projects aim to provide the infrastructure for Bitcoin DeFi, channeling the asset\u2019s vast market cap into onchain capital markets. <\/p>\n

This effort mirrors Ethereum\u2019s own transformation through liquid staking derivatives, but with the potential to unlock a deeper pool of value given bitcoin\u2019s scale.<\/p>\n

To contextualize the difference in scale, Ethereum\u2019s liquid staking market, led by Lido\u2019s stETH, boasts a market cap of approximately $38 billion<\/a>. In contrast, the entire bitcoin LST sector is still nascent, with total market capitalization around $2.5 billion<\/a>. Lombard\u2019s LBTC alone accounts for roughly $1.4 billion of that, or around 40% of the bitcoin LST market. <\/p>\n

Building on that foundation, Lombard this week announced the creation of the Liquid Bitcoin Foundation and its native $BARD token<\/a>, alongside a $6.75 million community sale.<\/p>\n

The Foundation will act as an independent steward of the protocol, funding research, grants, and education, while establishing governance frameworks to preserve neutrality. $BARD will serve as the utility and governance token of the ecosystem, giving holders the ability to stake to secure Lombard\u2019s core infrastructure, vote on proposals, and gain access to new products.<\/p>\n

Jacob Phillips, Lombard\u2019s co-founder, described the community sale as \u201can invitation to over 260,000 LBTC holders and others in the Bitcoin ecosystem to help shape the future of bitcoin onchain.\u201d Erick Zhang, founder of Buidlpad who will host the sale, added that Lombard is \u201ca pioneer unlocking bitcoin\u2019s full potential as digital gold and a foundation for next-gen capital markets.\u201d<\/p>\n<\/div>\n

\n

Disclaimer: <\/span>Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to <\/span>our standards<\/a>. For more information, see <\/span>CoinDesk’s full AI Policy<\/a>.<\/p>\n<\/div>\n

\n
\n
Jamie Crawley<\/a><\/h5>\n
\n

Jamie has been part of CoinDesk’s news team since February 2021, focusing on breaking news, Bitcoin tech and protocols and crypto VC. He holds BTC, ETH and DOGE. <\/p>\n<\/div>\n

X icon<\/title><\/svg><\/a><\/g><\/svg><\/a><\/p>\n<\/div>\n

\"Jamie<\/a><\/p>\n<\/div>\n

\n
\n
AI Boost<\/a><\/h5>\n
\n

\u201cAI Boost\u201d indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy<\/a>.<\/p>\n<\/div>\n<\/div>\n

\"CoinDesk<\/a><\/p>\n<\/div>\n

\n

More For You<\/p>\n

\n

Optimism Taps Flashbots to Supercharge OP Stack Sequencing<\/p>\n

\"DNA,<\/figure>\n

The partnership centers on sequencing, the behind-the-scenes process that determines how quickly a transaction confirms, which trades are prioritized, and how much users ultimately pay. <\/p>\n

\n

What to know: <\/p>\n

\n