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# Bitcoin collateral meets institutional credit
- URL: https://www.cryptoincome.club/bitcoin-collateral-meets-institutional-credit/
- Published: 2026-10-02T18:15:19.000Z
- Updated: 2026-10-02T18:15:19.000Z
- Description: Flow Traders tests Lombard’s stablecoin borrowing strategy.
- Author: Santosh Srinivas
- Tags: DeFi & lending, Edition 001

**Source: The Block · JUL 23, 2026 · REPORTED NEWS**

Flow Traders piloted a Lombard strategy that connects stablecoin borrowing with bitcoin-backed capital. The reporting describes an allocation within Bitcoin Earn, using Cap’s private-credit underwriting to channel borrowing premiums toward depositors.

## The income angle

The income is compensation for financing activity, rather than rewards created by Bitcoin validation. Underwriting, allocation concentration and repayment remain important. A pilot also says less about capacity through a stressed market than a long operating history would.

[Read the original source →](https://www.theblock.co/news/defi/2026-07-23-flow-traders-pilots-lombards-new-bitcoin-backed-credit-strategy-for-stablecoin-borrowing-409516?ref=cryptoincome.club)

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*Original CryptoIncome.club summary, curated 2 October 2026\. This article describes the source at its stated date; it does not confirm current availability, rates or eligibility.*