Chainlink Launches New Solution Allowing Institutionally Custodied Assets to Participate Directly in DeFi Lending

October 27 — According to Chainlink's official blog, Chainlink has officially launched its CustodySync solution, which allows qualified custodians to let their institutional clients participate in DeFi lending markets while their assets remain in custody; Anchorage Digital, a federally chartered U.S. digital asset bank, is the official launch partner. The solution publishes custody balances on-chain via Chainlink Proof of Reserve and issues transfer-restricted receipt tokens representing the custodied assets to lending markets as collateral; custodians and lending protocols calculate LTV based on the same price data from Chainlink Data Feeds and Data Streams, and when liquidation is triggered, a designated collateral agent executes the sale. Chainlink said that digital asset custody currently amounts to about $700 billion, the DeFi lending market has more than $80 billion in deposits and over $30 billion in active loans.