Flow Traders Partners With Lombard and Cap to Access On-Chain Stablecoin Credit
Global liquidity provider Flow Traders has partnered with Lombard Finance and Cap Protocol to access on-chain stablecoin credit for its digital asset market-making operations. Through this collaboration, Flow Traders will act as the premier pilot partner for Lombard's newly unveiled Bitcoin Onchain Credit Strategy. This institutional framework allows the publicly listed trading firm to seamlessly borrow stablecoins without posting its own capital on-chain.
The technical architecture relies on Cap Protocol's automated private credit marketplace to safely source liquidity and distribute underwriting premiums. Rather than forcing borrowers to lock up funds in public pools, the framework separates capital providers from institutional borrowers via custom smart contracts. Bitcoin deposited into Lombard’s Bitcoin Earn vaults provides the foundational collateral coverage, effectively matching decentralized depositors with regulated financial demand.
To ensure frictionless multi-chain utility, the strategy integrates Chainlink's Cross-Chain Interoperability Protocol to securely move underlying assets between Avalanche and Ethereum. The system also utilizes Symbiotic for decentralized collateral enforcement at the core protocol level. This ecosystem integration provides a secure solution to legacy private credit inefficiencies, unlocking institutional capital while delivering stable yields back to native crypto holders.