Lombard shifts LBTC yield strategy to Bitwise covered calls

Lombard announced it will shift LBTC’s yield-generation model from Babylon Bitcoin staking to a covered-call options strategy managed by Bitwise, targeting a 2.5% annual net APY in BTC terms. Up to 60% of LBTC collateral assets will be allocated to the strategy, while the related Bitcoin will be held in custody by Anchorage Digital Bank and Kraken Institutional. Lombard plans to begin with a $10 million pilot allocation during the week of Aug. 17 and complete the full allocation in September. Existing LBTC holders do not need to take any action.