I do some leatherwork for fun and there's a lot of things that make it hard to replace. We'll see how it holds up when stitched.
I'm very open to trying it out, though. And maybe an upholstery waterproofer would do the job.
We at Serotiny are already collecting protein domains from organisms with various capabilities - including water solubility, hydrophobicity, enzymatic capabilities, covalent attachment sites (for dyes), light-activated properties/crosslinking/dissociation/etc. And all of those protein domains we're collecting should be 100% compatible (+/- a fair bit of a tooling-exercise) with both Bolt's leather and their silk.
So it should get fun once they have a solid and stable 'platform' up and running. They will be able to incorporate most any property from nature with an existing proof of principal, not just any property form mammalian hides.
Congratulations guys!
From the description (and it isn't much) I'm guessing that this is going to drape much like felt. Is that close to leather? Well it is closer than most woven fabrics but leather and felt behave much differently.
I would also expect that this is going to cost far more than actual leather does.
Really the bar is set quite low for fake leather being waterproof.
Source: I work with a lot of leather.