December 20, 2025 Bitcoin liquidity has been moving in a different direction over the past year. Less speculation, more positioning. Lorenzo Protocol has been sitting in that flow rather than trying to create noise around it.
Lorenzo Protocol operates as a Bitcoin liquidity layer on BNB Chain, focused on staking, yield products, and asset management for users who want BTC exposure without locking everything away. It is not flashy, but it is starting to show real usage.
What the Protocol Actually Does
At a basic level, Lorenzo lets Bitcoin holders stake BTC while keeping liquidity.
Most staking happens through Babylon integration. Users deposit BTC and receive stBTC, which represents staked Bitcoin plus yield. That token can still be traded or used across DeFi. Custody does not disappear.
For users who want to move beyond one chain, enzoBTC exists as a multichain version of BTC. It can be used across more than twenty networks without leaving the Lorenzo setup entirely.
On top of that, Lorenzo issues structured yield products called On Chain Traded Funds, or OTFs. USD1+ is the main one right now. It bundles real world assets, trading strategies, and DeFi yield into a single product.
The BANK token handles governance, rewards, and incentives.
Liquidity and the $1 Billion TVL Level
One of the clearer signals this year has been TVL growth.
Lorenzo’s total value locked has passed $1 billion during 2025. Most of that growth comes from stBTC adoption. Bitcoin holders are using it as a way to earn yield without giving up flexibility.
This is not short term liquidity chasing points. Much of the capital looks parked with a longer view.
Babylon Staking and stBTC Usage
Babylon remains central to the setup.
Based on figures that carried from late 2024 into 2025, more than 2,127 BTC has been staked through Lorenzo’s Babylon-linked plans. Users receive stBTC and continue earning Babylon-related rewards.
stBTC stays usable in liquidity pools, lending markets, and cross-chain setups. That flexibility is why it keeps showing up in BTCFi discussions.
Multichain Expansion and Infrastructure
Lorenzo has been expanding slowly rather than all at once.
Chainlink plays a role here through CCIP, price feeds, and Proof of Reserve. These tools help with security and cross-chain movement for stBTC and enzoBTC.
Liquidity partnerships have pushed stBTC into more than 20 chains, including Ethereum, Arbitrum, Sui, and Aptos. Non EVM ecosystems like Sui have been a particular focus recently.
Events around BTCFi activity on Sui have highlighted stBTC pools earning additional rewards and attention.
Airdrops and Incentives
Lorenzo also ran a large incentive program.
A total of 42 million BANK tokens, along with $200,000 in BNB, was distributed through Binance Wallet and PancakeSwap. Users had until September 3, 2025 to bind wallets and claim.
That helped participation, but it also created sell pressure. Some of that pressure is still visible in BANK price action.
Product Expansion and Institutional Use
USD1+ continues to be positioned as a core product.
Lorenzo acts as the official on chain asset manager for World Liberty Financial, and that relationship shapes how USD1+ is built. The focus stays on structure and risk control.
New collaborations with Tagger AI and BlockStreet are aimed at integrating USD1+ into enterprise payment and settlement workflows. That is a longer road, but it fits the protocol’s direction.
BANK Market Snapshot
As of December 20, 2025:
BANK trades around $0.035 to $0.039
Daily volume sits above $6 million
Market cap is roughly $18 to $20 million
Rankings move between #729 and #740
All time high remains $0.233 from October 2025
Price action has been relatively calm compared to earlier in the year.
Closing Thoughts
Lorenzo Protocol is not trying to accelerate Bitcoin. It is adapting to how Bitcoin holders actually behave.
TVL growth and cross-chain use suggest the model is working, even if the token price has not reacted yet. BANK looks less like a momentum asset and more like infrastructure tied to slow-moving capital.
For now, Lorenzo feels like a protocol being built for patience rather than headlines.
Disclaimer: Lorenzo Protocol is a smart contract based DeFi platform relying on automated mechanisms. Cryptocurrency markets are volatile. Always do your own research.
