According to Chainthink, on December 3, Babylon announced a partnership with decentralized lending protocol Aave to support native Bitcoin as collateral in Aave V4, without the need for wrapped tokens or custodial intermediaries. The collaboration 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 and other assets 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 Launch Native BTC Collateral Lending, Expected to Launch in April 2026
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