Figment announced on January 14, 2026, its collaboration with Ledger and Lombard to offer institutional and personal Bitcoin staking services, using Layer-2 solutions such as Babylon and Stacks. This partnership allows BTC holders in self-custody in Ledger Wallets to receive rewards in LBTC, maintaining custodial security and enabling simple or complete on-chain yield.

Figment's offer focuses on putting BTC to work through institutional and non-custodial options, supporting restaking and ecosystem growth. The integration with Ledger and Lombard enables users to deposit BTC and receive LBTC as a representative token, backed 1:1, and generating yield, with Figment handling validation and Babylon providing the staking protocol.

• Bitcoin Staking: Showcases BTC staking offerings through Layer 2 platforms like Babylon and Stacks, highlighting non-custodial options, institutional security, and support for restaking and composability.
• Figment, Ledger, and Lombard: Announces the integration that allows Ledger Wallet users to deposit BTC into the Figment dApp and receive LBTC, backed by Figment's validation infrastructure and the Babylon protocol.

Step by step

• Open Ledger Wallet
  • Ensure your Ledger Wallet is up to date.
• Access the Discover section.
• Connect to the Figment dApp within Ledger; deposit BTC.
  • Only from Taproot and Native SegWit accounts.
• Receive LBTC: a liquid, fully backed token that accumulates rewards and is usable in DeFi.

How Yields Are Generated

Lombard converts BTC into LBTC and deploys that BTC to secure PoS networks through the Babylon Bitcoin Staking Protocol; the rewards in native tokens are sold on liquid markets and converted back to BTC, increasing the value of LBTC in BTC denomination. This means that yields are reflected in the LBTC/BTC price.

Rates and Ranges

• Publicly Reported Rate (as of this publication): 0.41% APY for LBTC according to aggregators and press coverage; this figure may change with activity and the composition of rewards.
• APR range on Babylon (public panel): from 0.03% to 0.97% on-chain metrics; exchange campaigns or promotions have offered up to 2.5% for limited periods. This shows that yields can vary due to incentives and associated products.

Three possible performance scenarios for LBTC

• Conservative: 0.05% APY,
• Base: 0.41% APY, the value promoted on the website and app, and
• Optimistic: 2.5% promotional APY

Liquidity and Timeframes

Withdrawal processes can take time; in the initial integration, Ledger reported a timeframe of approximately 7 days for BTC to return to the native account after a withdrawal request. It is recommended to check current times in the dApp when trading.

Potential Risks

• Smart Contract Risk - Layer 2: LBTC and Babylon depend on contracts and bridges; technical vulnerabilities can affect funds.
  • Review audits before participating.
• Operational Counterparty Risk: Although physical custody remains with Ledger, the issuance and management of LBTC involves Lombard and Figment, and the yield logic depends on third parties. or read terms and conditions
• Recommendation:
  • Start with small amounts,
  • keep Ledger firmware updated,
  • check periodically for audits, and
  • be sure to fully understand withdrawal fees and provider conditions.
  • start with small amounts,
• Market risk and incentives: APY may fall if external rewards decrease; promotions may temporarily inflate the figure.

What Is Lombard? 

Lombard is a protocol focusing on becoming the driving force of the Bitcoin Ecosystem. Inspired by the onchain revolution its mission is to make Bitcoin more accessible for all, from everyday users to the crucial developers building apps. It builds powerful infrastructure and supports participants in the Bitcoin ecosystem, unlocking new ways to use the network. In 2024 it launched its Bitcoin-based liquid staking token LBTC, allowing users to earn Bitcoin Yield and thus opening up the DeFi ecosystem to Bitcoin users.

Lombard Staked BTC (LBTC)

Lombard transforms Bitcoin from a passive asset into a productive one by issuing LBTC, a liquid, reward-producing Bitcoin token backed 1:1 by BTC. Built on the Babylon protocol, LBTC enables users to earn staking rewards and participate in DeFi across multiple networks, without compromising Bitcoin’s security or value.

Data summarized from the following pages and others:

• https://www.figment.io/insights/figment-ledger-lombard-btc-holders/
• https://www.figment.io/bitcoin-staking/
• https://www.ledger.com/blog-btc-yield-ledger-wallet-lombard-via-figment
• https://www.figment.io/staking/protocols/lombard/

I have no commercial relationship with any of the companies or services mentioned.

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