Chainlink Launches CustodySync, allowing institutionally custodied assets to participate in DeFi lending
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Chainlink Launches CustodySync, enabling institutional assets to participate in DeFi lending while remaining in custody.
Article
Chainlink Launches a new solution, allowing institutionally custodied assets to participate directly DeFi Lending
PANews October 27 According to a report,Chainlink the official blog,Chainlink has officially launched CustodySync a solution that allows qualified custodians to enable their institutional clients to participate in DeFi lending markets while assets remain in custody. U.S. federally chartered digital asset bank Anchorage Digital is the official launch partner. The solution uses Chainlink Proof of Reserve to publish custodied balances on-chain and issue restricted-transfer certificate tokens representing custodied assets as collateral; the custodian and lending protocol calculate using the same price data from Chainlink Data Feeds and Data Streams, and,LTV when liquidation is triggered, a designated collateral agent executes the sale.Chainlink states that the current scale of digital asset custody...
PANews reports that the information comes from the Chainlink official blog.
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Chainlink Has officially launched CustodySync a solution.
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The solution allows qualified custodians to enable institutional clients to participate in DeFi lending markets while assets remain in custody.
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Anchorage Digital is the official launch partner.
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The solution uses Chainlink Proof of Reserve to publish custodied balances on-chain and issue restricted-transfer certificate tokens representing custodied assets as collateral.
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The custodian and lending protocol calculate using the same price data from Chainlink Data Feeds and Data Streams.LTV。
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When liquidation is triggered, a designated collateral agent executes the sale.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Simply put, institutions do not need to first move assets out of custody. Instead, they use on-chain proof of balances and restricted-transfer certificate tokens to use those assets as DeFi lending collateral. Both parties use the same set of price data to calculate collateral levels; if liquidation is required, a designated agent then sells the collateral.
Why it matters to readers
This solution seeks to connect institutional custody with DeFi lending, allowing assets still held by custodians to serve as collateral for on-chain lending.
Key takeaway for beginners: the assets participating in lending are not the custodied assets transferred out directly, but restricted certificates representing those assets; it remains necessary to monitor which assets and protocols are supported and how liquidation is executed.
Risks and unknowns
The material is PANews' account of the Chainlink official blog and does not provide the full official original text.
The main text is truncated at “the current scale of digital asset custody,” so the related scale data cannot be confirmed.
The specific supported assets, blockchains, and DeFi lending protocols are not specified.
Anchorage Digital's actual deployment progress is not specified.
The identity of the collateral agent, liquidation rules, and related risk arrangements are not specified.
Related Developments
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Related concepts
DeFi
A decentralized financial system that conducts activities such as lending and swapping through blockchain protocols.
An asset provided by a counterparty to guard against potential losses, which may be liquidated in the event of default to compensate the lender for its loss.
