Aave Is Turning Custody Into a New Credit Layer for DeFi

Aave Is Turning Custody Into a New Credit Layer for DeFi

Aave custodied collateral lending turns BTC held at Anchorage into borrowing power without moving it into public DeFi. The first proposed rollout uses one BTC CoCT instance, giving you a concrete example of how Aave V4 could add institutional demand while keeping existing reserves isolated.

CoinStats - Aave (AAVE) News Today: Why AAVE Is Down – 20...

• Aave Labs proposed an isolated V4 market for borrowing stablecoins against Anchorage Digital Bank-custodied Bitcoin on 20 September 2026. • The Aave V4 Arc market held $76 million in supplied USDC with borrowing below $100,000 as of 18 September 2026. • Early access for the Aave App opened to U.S. users through Ghost Pass on 19 September 2026. • AAVE traded at $140.14, down 1.77% over 24 hours and up 41.33% over 30 days. • AAVE's market capita…

Aave Proposal Brings Anchorage-Custodied Bitcoin Into V4 Lending Model

TL;DR Aave Labs has proposed a V4 market built around institutionally custodied collateral. Bitcoin would remain with Anchorage while an on-chain receipt represents the collateral. Chainlink infrastructure would keep custody data synchronized with Aave. Aave Labs is exploring a lending structure...

Aave Proposal Brings Anchorage Custodied Bitcoin Into V4 Lending Model

Read the latest update on Aave Proposal Brings Anchorage-Custodied Bitcoin Into V4 Lending Model.