Odaily Planet Daily reports that Chainlink has launched CustodySync, enabling qualified custodians to allow institutional clients to participate in DeFi lending markets while keeping assets under custody. Anchorage Digital, a U.S. federally chartered digital asset bank, is the inaugural partner. The solution uses Chainlink Proof of Reserve to publish custodial balances on-chain and issues non-transferable tokenized receipts representing the custodied assets as collateral; both the custodian and lending protocols use the same price data provided by Chainlink Data Feeds and Data Streams to calculate LTV, with designated collateral agents executing liquidations when triggered.
Chainlink Launches CustodySync to Enable DeFi Lending with Custodied Assets
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Summary
Chainlink has launched CustodySync, a new solution enabling DeFi lending with custodied assets. The tool allows institutional clients to earn yield while keeping their assets under custody. Anchorage Digital is the first partner. The system uses Chainlink Proof of Reserve to publish balances on-chain and issues tokenized collateral. This RWA development highlights the integration of traditional finance with DeFi. Custodians and protocols rely on Chainlink Data Feeds for LTV calculations, with liquidations managed by a collateral agent. The initiative aims to reduce risks such as DeFi exploit scenarios by maintaining custody controls.
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