Lombard is moving LBTC's yield engine from Babylon Bitcoin staking to a Bitwise-managed covered-call options strategy targeting 2.5% annual net APY in BTC terms. The rollout is set to begin with a $10 million pilot in the week of Aug. 17, with broader deployment planned for September, and up to 60% of LBTC collateral assets may be allocated while the underlying Bitcoin remains in custody with Anchorage Digital Bank and Kraken Institutional. Bitwise described the mandate as the first product in its alpha strategies line, part of a five-part investor-solutions framework that also includes ETFs and ETPs, staking, vault curation and an undisclosed fifth category. The firm says it manages between $10 billion and $15 billion in client assets, offers more than 70 investment solutions, and has seen strong demand this year from clients with at least $25 million in spot assets for options-overlay yield strategies.