Babylon Partners with Aave to Enable Native Bitcoin Collateral Lending on V4
Babylon announced on Dec. 3 a partnership with decentralized lending protocol Aave to support native Bitcoin as collateral in Aave V4, eliminating the need for wrapped tokens or custodial intermediaries. The collaboration will integrate Babylon's trustless vault infrastructure with Aave's hub-and-spoke architecture, allowing users to deposit native BTC on the Bitcoin base layer while borrowing stablecoins and other assets in Aave markets. Testing is expected to begin in early 2025, with product launch planned for April.