Chainlink launches CustodySync for institutional DeFi lending - grafa.com
Chainlink has launched CustodySync, connecting institutional clients at qualified custodians to decentralised finance lending markets without moving assets out of custody.
The system connects qualified custodians with decentralised finance lending markets, addressing barriers between institutional custody systems and onchain lending protocols. Chainlink estimates digital assets under custody total about US$700 billion, compared with US$80 billion in DeFi lending deposits and more than US$30 billion in active loans.
Launch Partner
Anchorage Digital Bank, N.A., is the first qualified custodian to adopt CustodySync, using its Atlas Collateral Management product to support institutional lending access.
Institutions should not have to choose between qualified custody and onchain liquidity.
Technology
The system uses Chainlink Proof of Reserve to publish verifiable custody balances and restricted receipt tokens to represent collateral in lending markets. Chainlink Data Feeds and Data Streams provide consistent pricing across onchain lending protocols and custodians' internal systems, helping align loan-to-value calculations.
Market Potential
CustodySync expands institutional access to decentralised lending, although adoption will depend on custodians and lending markets integrating the system.
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