Babylon has announced a strategic partnership with Aave to introduce native Bitcoin lending on the Aave V4 platform, set to launch in April 2026. This collaboration will allow users to use native Bitcoin as collateral, bypassing the need for wrapped tokens or custodial intermediaries. The initiative aims to enhance the efficiency and security of Bitcoin lending, with testing scheduled to commence in early 2026. David Tse, co-founder of Babylon, highlighted the potential impact of this development, suggesting that even a small percentage of Bitcoin's supply entering lending protocols could significantly boost market volumes. This move is expected to attract more Bitcoin holders to decentralized finance platforms, offering them new opportunities to leverage their assets.