Chainlink has officially launched CustodySync, a solution enabling institutional clients to participate in DeFi lending markets while their assets remain under qualified custody. Anchorage Digital, a federally chartered U.S. digital asset bank, serves as the official launch partner.
The system publishes custody balances on-chain via Chainlink Proof of Reserve and issues transfer-restricted receipt tokens representing custodied assets as collateral for lending protocols. Both custodians and lending platforms calculate loan-to-value ratios using identical price data from Chainlink Data Feeds and Data Streams. When liquidation triggers occur, a designated collateral agent executes the sale.
Chainlink reports that digital asset custody currently totals approximately $700 billion, while the DeFi lending market holds more than $80 billion in deposits and over $30 billion in active loans.
Chainlink Launches CustodySync to Bridge Institutional Custody with DeFi Lending
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