Aave has published a governance proposal that would allow institutions to borrow stablecoins against Bitcoin held in custody at Anchorage Digital, without ever moving collateral on-chain. This structure, called « Custodied Collateral Lending: Aave V4 Isolated Hub & Spoke », uses non-transferable tokens called Custodied Collateral Tokens (CoCTs), issued through Chainlink’s CustodySync infrastructure. Liquidations would be conducted over-the-counter rather than through public auctions. The proposal, posted on September 14 on Aave’s governance forum, still needs to be approved by DAO token holders.
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