CoolWallet Launches Bitcoin Staking Feature in Partnership with Lombard Finance

CoolWallet, a Web3 cold wallet, has officially launched a new “Earn” feature that enables users to stake Bitcoin ($BTC) and generate yield directly through its mobile application. This passive income feature has been introduced in collaboration with Lombard Finance, BTC yield firm. With this new feature, CoolWallet is expanding Bitcoin staking accessibility for retail crypto users.

With the latest integration, CoolWallet users can now convert their Bitcoin ($BTC) holdings into LBTC, a liquid staked Bitcoin token backed 1:1 by BTC reserves. The staking mechanism is powered by the Babylon protocol, which utilizes Bitcoin to help secure Proof-of-Stake (PoS) blockchain networks while allowing users to earn rewards.

New CoolWallet Earn Feature Offers Self-Custodial BTC Staking

According to CoolWallet, its new feature maintains full self-custody. It means that users will have full control over their assets through the company’s hardware wallet infrastructure. Additionally, staking rewards are automatically compounded and reflected through the increasing value of LBTC over time.

The company highlighted several key features included in the rollout. These features include a low minimum staking requirement starting at 0.0002 BTC only. The rewards of staking will be automatically compounded. Moreover, full self-custody security will be provided through CoolWallet’s hardware wallet infrastructure. Additionally, the feature is integrated with the Babylon Bitcoin Staking Protocol and is supported by institutional-grade infrastructure providers.

Bitcoin Staking Continues Expanding in 2026

The launch comes at a time when Bitcoin staking and restaking products are witnessing growing adoption across the digital asset sector. These solutions allow Bitcoin holders to generate passive income opportunities while maintaining liquidity and avoiding long-term lock-up periods. Lombard Finance’s LBTC has emerged as one of the more recognized liquid staking assets within the Bitcoin DeFi (BTCFi) ecosystem. The token enables users to participate in yield-generating strategies while preserving exposure to Bitcoin.