Dolomite Adds $100 Million in Concrete’s Bitcoin-Backed Collateral

Dolomite has added roughly $100 million in Bitcoin-backed BTCcx collateral through Concrete, which says the tokens are backed one-to-one by Bitcoin in qualified custody. The lending protocol announced on Oct. 19 that borrowing against the collateral is already live, while the underlying Bitcoin remains with BitGo.

The arrangement lets Concrete borrow without selling or moving the underlying Bitcoin out of custody upfront. It is a managed borrowing position, not a new lending market open to every Bitcoin holder: Dolomite’s documentation says only Concrete can issue these assets and operate with them on the protocol.

For lenders funding that borrowing, the collateral introduces a different liquidation process. Recovering the underlying assets requires an offchain custody redemption, so proceeds cannot return and repay debt in the same onchain transaction, according to the documentation.

Dolomite’s Ethereum market dashboard showed $100.08 million in BTCcx supplied in the Oct. 19 snapshot reviewed for this article, broadly matching the partners’ $100 million announcement. Etherscan’s holder records separately showed about 1,221.15 BTCcx held by Dolomite’s margin contract.

That collateral value is not the amount borrowed. BTCcx itself is never borrowable under the documented structure; Concrete borrows against it. Dolomite’s announcement did not specify the outstanding debt secured by BTCcx.

Custody Adds a Settlement Step

Concrete issues BTCcx on Ethereum as a representation of the custodied Bitcoin, supplies it to Dolomite and manages the borrowing position. Dolomite says borrowed funds are generally deployed into yield-bearing strategies that can be unwound for repayment. If collateral prices fall beyond acceptable thresholds, Concrete is responsible for partial repayments to restore the position’s health.

The assets use the underlying asset’s Chainlink price feed, according to Dolomite. The structure depends on both BitGo’s custody and Concrete’s issuance and management, with market prices able to change while custody redemption is pending.

If forced liquidation becomes necessary, a temporary, market-specific claim token represents the collateral during settlement. The underlying asset goes through offchain redemption, proceeds return onchain to repay the debt, and the temporary claim token is closed. Dolomite’s documentation still labels the settlement contracts “Coming soon.”

BTCcx extends an existing arrangement between the two projects. Dolomite already supports Concrete’s WLFIcx, another BitGo-custodied asset issued on Ethereum. Its dashboard showed $108.65 million of WLFIcx supplied in the same snapshot.