Bitcoin News Today: Bitcoin's Liquidity Revolution Gets a Governance Engine

Bitcoin liquid staking is gaining traction as projects like Lombard Finance introduce innovative tools to unlock the asset’s value in decentralized finance (DeFi). Lombard’s LBTC token, a yield-bearing representation of Bitcoin, is already a key player in the nascent Bitcoin liquid staking (LST) market. With over $1.5 billion in total value locked (TVL), LBTC allows users to stake their Bitcoin while maintaining liquidity and earning rewards. This token is integrated with major DeFi protocols such as Aave, Etherfi, and Pendle, facilitating seamless participation in onchain capital markets. The broader Bitcoin LST market, although still in its early stages at approximately $2.5 billion, is showing strong growth potential, particularly in comparison to Ethereum’s more mature $38 billion liquid staking sector.

To further expand its role in the Bitcoin DeFi ecosystem, Lombard has launched the Liquid Bitcoin Foundation and a native governance token, $BARD. The foundation will act as an independent steward of the protocol, funding research, grants, and educational initiatives while establishing governance frameworks to ensure long-term neutrality and decentralization. The $BARD token serves as both a utility and governance instrument, enabling holders to participate in key decisions, secure network infrastructure, and access new products. A $6.75 million community sale, conducted through Buidlpad, aims to distribute 1.5% of the $BARD token supply to over 260,000 LBTC holders and other participants in the Bitcoin ecosystem. The sale, set at a $450 million fully diluted valuation, prioritizes existing users, content creators, and LBTC holders.

The Lombard SDK further enhances accessibility by integrating native Bitcoin staking into platforms like Xverse, reaching over 1.6 million users. This infrastructure allows users to earn yield directly within the Xverse Earn interface, offering both basic staking and advanced DeFi vault strategies for compounded returns. The SDK also supports real-time tracking of balances and rewards and allows for immediate withdrawal back to Bitcoin, ensuring a user-friendly and transparent experience.

Lombard’s expansion into infrastructure is not limited to its core products. The project has built a full-stack solution, including security layers, cross-chain wrappers, and middleware tools used by exchanges like Binance and Bybit. These developments position Lombard as a critical enabler of Bitcoin’s integration into DeFi ecosystems across multiple blockchains. The TVL in LBTC is supported by a network of 14 large validators and enhanced by Chainlink services such as CCIP for cross-chain transfers and Proof-of-Reserve for transparency. This infrastructure supports Lombard’s goal of transforming Bitcoin from a passive store of value into a liquid, productive asset within onchain markets.

The $BARD token’s launch has drawn attention for its potential as a governance tool and its role in shaping the future of Bitcoin DeFi. With no vesting and full token unlocks at the time of genesis (TGE), the token is expected to experience significant volatility at launch. However, the team’s strategic approach—backed by institutional investors such as Polychain Capital and Franklin Templeton—suggests a focus on long-term infrastructure development. The Liquid Bitcoin Foundation’s grants program is also expected to play a crucial role in supporting both commercial and public goods that enhance the Bitcoin DeFi landscape.

Overall, Lombard’s efforts to mobilize Bitcoin liquidity reflect a broader shift in the DeFi space, where Bitcoin is increasingly being viewed not just as a store of value but as a foundational asset for onchain capital markets. As the Bitcoin LST market continues to develop, projects like Lombard are likely to play a pivotal role in defining the next phase of decentralized finance.

Source: [1] Bitcoin Liquid Staking Gains Momentum as Lombard Launches BARD Token and Foundation (https://www.coindesk.com/tech/2025/08/23/bitcoin-liquid-staking-gains-momentum-as-lombard-launches-bard-token-and-foundation) [2] Lombard Launches $BARD Token Sale at $450M Valuation (https://coinmarketcap.com/academy/article/lombard-launches-dollarbard-token-sale-at-dollar450m-valuation) [3] Lombard Finance Launches $BARD Token and Liquid (https://holder.io/news/lombard-finance-bard-token-launch) [4] Lombard Brings Native Bitcoin Staking to 1.6M+ Xverse Users (https://www.lombard.finance/blog/lombard-brings-native-bitcoin-staking-to-1-6-m-xverse-users) [5] Lombard Unveils $450 Million Valuation for BARD Token (https://coincentral.com/lombard-unveils-450-million-valuation-for-bard-token-in-community-sale) [6] Lombard's $BARD Sale on Buidlpad Explained (https://dropstab.com/research/alpha/lombard-bard-sale-on-buidlpad)