Lombard Finance has launched its Bitcoin Onchain Credit Strategy with Flow Traders serving as the pilot counterparty, enabling the market maker to borrow stablecoins against BTC collateral using an onchain credit structure. Flow Traders is one of the largest crypto market makers globally, giving this pilot institutional credibility. The structure represents a maturing segment of crypto-backed lending where professional trading firms are using BTC as productive collateral rather than holding it idle.
This is a direct competitive and benchmark reference for Armada's crypto repo desk. The LTV ratios, borrowing rates, and collateral management mechanics Lombard and Flow Traders agree on will influence what institutional market makers expect when approaching Armada. The desk should analyze disclosed terms closely, particularly haircut levels and margin call triggers, and confirm whether Armada's no-rehypothecation policy and Fireblocks custody model can be positioned as a differentiating risk control feature relative to onchain structures.