Lombard Raises $94.7 Million in Oversubscribed Bitcoin DeFi Token Sale

Lombard Finance has made waves in the Bitcoin DeFi space after completing a massively oversubscribed token sale. The offering, which concluded on September 3, raised an impressive $94.7 million, far surpassing its original target of $6.75 million. The result highlights growing investor enthusiasm for Bitcoin-based decentralized finance at a time when the sector is rapidly evolving.

A Record-Breaking Community Sale

The fundraising round centered on BARD, Lombard’s governance token, which will play a key role in shaping the project’s protocol and ecosystem. According to Lombard, the public sale drew 21,340 new community members, underscoring widespread interest in the company’s vision.

“The momentum behind the Community Sale was evident throughout, and the result clearly shows belief in Lombard’s ability to drive onchain Bitcoin demand to new highs now and into the future,” said Jacob Phillips, Lombard’s co-founder. He added that the capital raised will help accelerate the project’s roadmap as it moves into its second development phase.

The oversubscription rate of 1,400% reflects the strong appetite for Bitcoin-native DeFi solutions, a niche that has traditionally lagged behind Ethereum’s more established ecosystem.

How Lombard’s Bitcoin DeFi Model Works

At the heart of Lombard’s strategy is LBTC, a yield-bearing token fully backed by Bitcoin. Holders of LBTC can earn 1% annual percentage yield (APY) through Bitcoin staking facilitated by Babylon Labs. To enhance security, Lombard relies on a decentralized validator network, a design choice meant to address the long-standing risks associated with cross-chain bridges and wrapped tokens.

These safeguards are critical, as blockchain bridges have been one of the most vulnerable points in decentralized finance. Industry data shows that traders have lost more than $2.8 billion in bridge-related exploits, some of which were linked to insider rug pulls. By keeping assets on-chain and reducing counterparty exposure, Lombard hopes to position itself as a safer alternative for Bitcoin holders who want to tap into DeFi without the risks of traditional bridging mechanisms.

What This Means for Bitcoin DeFi

While Ethereum, Solana, and other chains have long dominated the DeFi conversation, Bitcoin’s ecosystem is beginning to carve out its own identity. Projects like Lombard are attempting to expand Bitcoin’s utility beyond a store of value or medium of exchange, transforming it into an asset that can participate directly in decentralized lending, governance, and yield generation.

If successful, Lombard’s model could attract a wave of Bitcoin holders who have historically been reluctant to engage with DeFi due to security concerns. By combining yield opportunities with Bitcoin’s unmatched liquidity and brand recognition, the project is betting on a future where Bitcoin DeFi moves closer to the mainstream.