Aave Labs has proposed a V4 market designed for collateral held by institutional custodians. Under this model, Bitcoin would remain at Anchorage Digital Bank while a non-transferable token would represent the on-chain position and serve as collateral on Aave. Chainlink’s CustodySync infrastructure would synchronize custody data with the lending protocol, allowing borrowers to access on-chain liquidity without moving their assets out of a regulated custody environment. The proposal, titled « Custodied Collateral Lending: Aave V4 Isolated Hub & Spoke, » is still in the governance discussion stage.
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