Citing ChainThink, Babylon has announced a collaboration with decentralized lending protocol Aave to support native Bitcoin as collateral on Aave V4, eliminating the need for wrapped tokens or custodial intermediaries. The integration will combine Babylon’s trustless vaults with Aave’s hub-and-spoke architecture, allowing users to deposit native BTC on the Bitcoin base layer while borrowing stablecoins on Aave markets. Testing is expected to begin in early 2026, with the product slated for a full launch in April.
Babylon and Aave Partner to Enable Native BTC Lending on Aave V4, Targeting April 2026 Launch
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