Catenaa, Monday, May 12, 2025- Lombard Finance has teamed up with the Eigen Foundation to integrate its liquid staked bitcoin token, LBTC, into the EigenLayer restaking ecosystem, the companies announced Monday. The partnership marks the first time a Bitcoin asset enters the Ethereum-based restaking protocol.
EigenLayer allows users to reuse staked assets to secure various decentralized services, while LBTC enables Bitcoin holders to earn passive income. Under the agreement, users can earn base yield via Bitcoin staking protocol Babylon and additional rewards through EigenLayer restaking.
“Partnering with EigenLayer creates a landmark moment for Bitcoin,” Lombard co-founder Jacob Phillips said. “This collaboration unlocks new rewards opportunities for Bitcoin holders while strengthening decentralized infrastructure across the ecosystem.”
Over the next six months, the two firms plan to enhance Bitcoin restaking security and introduce slashing mechanisms—penalties for malicious validator behavior. The long-term goal is to position Bitcoin not just as a store of value, but as a yield-generating asset with broader utility.
Luke Hajdukiewicz, Eigen Labs’ head of AVS business development, welcomed the integration, calling Lombard “an incredible addition to the ecosystem” that will provide “diverse security to AVSs,” or actively validated services.
The announcement follows Lombard’s April 17 release of a developer tool for integrating LBTC minting and Bitcoin staking into decentralized applications. Major exchanges Bybit and Binance are early adopters. Lombard previously raised \$16 million to expand LBTC offerings.
Bitcoin currently holds a market capitalization of \$1.9 trillion, solidifying its place as the world’s most valuable cryptocurrency.
