Partnership of BIMA and exSat for expansion of Decentralized Finance using Bitcoin as collateral
Decentralized finance protocol BIMA and Bitcoin banking provider exSat have joined forces to boost the adoption of Bitcoin-centered DeFi. The partnership, announced at the Bitcoin conference in Las Vegas on May 28, 2025, aims to strengthen the infrastructure of BTC-backed DeFi, providing a more robust and accessible financial system for Bitcoin holders.
The initial deployment of the partnership sees a combined effort to allocate $100 million in BTC, with plans to scale this deployment up to over $500 million worth of BTC. The collaboration follows BIMA's launch of its mainnet, which introduced the Bitcoin derivative-backed and over-collateralized stablecoin, USBD. Designed for capital efficiency, USBD allows users to maintain exposure to BTC's upside while engaging in yield strategies.
BIMA seeks to deliver DeFi benefits to Bitcoin holders by offering institutional-grade access to yield without requiring them to sell their BTC. USBD's structure is intended to unlock on-chain yield and stability, attracting both decentralized and centralized finance participants. According to BIMA's CEO, Sid Sridhar, the partnership marks a significant step towards mobilizing Bitcoin as a productive asset in DeFi. ExSat, a Bitcoin banking service provider, aims to build the financial rails for a programmable Bitcoin economy.
In the partnership, BIMA becomes the official stablecoin partner of exSat, with the latter deploying its native assets, including esBTC and iBTC, into BIMA vaults and structured products. ExSat's founder, Yves La Rose, notes that the collaboration is crucial for enabling users to borrow USBD against their Bitcoin and access permissionless yield strategies without exiting their positions, thus expanding Bitcoin's utility.
The collaboration between BIMA and exSat signals a commitment to developing and scaling Bitcoin-backed stablecoins, as well as innovating in Bitcoin-backed yield products. The goal is to provide new ways for users to earn on their Bitcoin holdings without converting them to other networks. By combining their respective expertise, the partnership is expected to streamline user onboarding, enhance liquidity, and improve overall security for Bitcoin-based DeFi applications.
While details about rollouts and milestones beyond the partnership announcement have not been disclosed, the organizations have expressed a strong commitment to growing Bitcoin-based DeFi solutions in the coming months.
- The partnership between BIMA and exSat, announced at the Bitcoin conference, aims to allocate $100 million in BTC initially, with plans to scale up to over $500 million worth of BTC.
- BIMA, through its mainnet launch, introduced the Bitcoin derivative-backed and over-collateralized stablecoin, USBD, designed for capital efficiency, allowing users to maintain exposure to BTC's upside while engaging in yield strategies.
- In the collaboration, BIMA becomes the official stablecoin partner of exSat, with exSat deploying its native assets, including esBTC and iBTC, into BIMA vaults and structured products.
- ExSat's founder, Yves La Rose, notes that the collaboration is crucial for enabling users to borrow USBD against their Bitcoin and access permissionless yield strategies without exiting their positions, thus expanding Bitcoin's utility.
- By combining their respective expertise, the partnership is expected to streamline user onboarding, enhance liquidity, and improve overall security for Bitcoin-based DeFi applications, providing new ways for users to earn on their Bitcoin holdings without converting them to other networks.
