Custodied Collateral Lending proposal goes live for Aave V4

A new Aave governance proposal introduces Custodied Collateral Lending, powered by Aave V4 inside an isolated Liquidity Hub. It lets regulated institutions borrow stablecoins on Aave against assets held in custody at Anchorage Digital, synchronized through Chainlink CustodySync. Founder Stani Kulechov called it a first-of-its-kind proposal for institutions to borrow on Aave V4 against collateral held with a qualified custodian.

• Anchorage holds the underlying collateral for the loan term, operates the collateral management system as the source of truth for balances and lifecycle events, and executes liquidations as OTC sales of the underlying asset
• Chainlink CustodySync mirrors custodial balances onchain via a non-transferable receipt token; Chainlink price feeds keep LTV in sync for both Aave and the custodian
• Borrowed stablecoins route to the borrower in a single transaction, opening onchain credit to regulated institutions that require a qualified custodian