Aave Teams Up With Anchorage for Institutional Custody
Aave has proposed a new plan to attract more institutions into the DeFi space by allowing them to borrow stablecoins using collateral held in regulated custodians.
The proposal, called custodied collateral lending, involves partnering with Anchorage, a qualified custodian, to hold the collateral backing the loan. This would enable institutional borrowers who cannot or will not self-custody their assets to participate in DeFi lending on Aave.
Aave's founder, Stani Kulechov, has described the proposal as 'first-of-its-kind,' which could unlock a massive amount of institutional capital for DeFi lending. If successful, this could lead to significant growth for Aave, which has already seen its total value locked (TVL) rebound by 52% in Q3 to $19B.