Lombard aligns with Story to build Bitcoin-based IP rails

Lombard is leveraging Bitcoin’s deep liquidity to act as a collateral layer for Story’s on-chain intellectual property, creating a new form of crypto-economic insurance for creators and rights holders.

According to a press release shared with crypto.news on Oct. 16, the partnership will see Lombard’s Bitcoin ( BTC ) infrastructure integrated directly into the Story protocol. This integration is designed to tackle two core frustrations for creators: the slow pace of royalty payments and the weak enforcement of licensing agreements.

Lombard said the model proposes using Bitcoin not just for payment, but as a foundational collateral asset, creating a financial backstop that can automatically enforce IP rights on-chain.

Bitcoin for programmable intellectual property

Story is a layer-1 blockchain that transforms intellectual property into programmable on-chain assets. This means copyrights, character designs, and music compositions can be tokenized with embedded licensing terms, creating what the industry calls “on-chain primitives.”

These digital assets can then be automatically licensed and remixed without the constant need for intermediary lawyers or agents. The protocol has already attracted major players, onboarding Korean IP giants like the webtoon sensation Solo Leveling and Barunson Studio, the Oscar-winning producer behind Parasite.

For Story, the partnership with Lombard is the critical step that moves its protocol from a rights management system to a full-stack financial engine. The integration introduces two specific innovations.

The first is Bitcoin Revenue Distribution, which tackles the industry-wide problem of slow royalty payments. Instead of waiting months and losing a cut to intermediaries, creators on Story can now receive payments in Bitcoin instantly and borderlessly.

The second innovation is Crypto-Economic IP Security. This uses Bitcoin as collateral to backstop licensing agreements, creating an automated enforcement mechanism. If a licensee fails to pay, the smart contract can liquidate the Bitcoin collateral to cover the royalties, turning a potentially lengthy legal battle into an instantaneous settlement.

“By integrating Lombard’s Bitcoin infrastructure, Story enables creators and developers to license, settle, and secure IP value instantly and globally. With Lombard, that value can now flow across the world as Bitcoin, the most trusted and durable digital asset,” Story CEO and co-founder SY Lee said.

Targeting the South Korean market

Per the statement, the alliance finds a strategic testing ground in South Korea, a global creative powerhouse whose cultural IP exports hit $13.6 billion last year. Story’s existing relationships with top-tier Korean studios, combined with Lombard’s established traction in the region, position the partnership at the epicenter of a massive market eager for innovation.

Notably, Lombard’s BARD token is already one of the most actively traded BitcoinFi assets on major Korean exchanges Upbit and Bithumb, and its recent alliance with institutional custodian KODA provides a compliant on-ramp for traditional finance.

Lombard brings a proven track record to this ambitious venture. The protocol has already onboarded more than $3 billion of previously idle Bitcoin onto its platform, achieving a $1 billion total value locked in a mere 92 days. Its flagship LBTC is integrated across 14 chains and more than 75 DeFi protocols, with over 80% of its supply actively deployed.