Chainlink CustodySync lets institutions tap DeFi lending without leaving custody
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Chainlink introduced CustodySync, a new system allowing institutional investors to use assets held with custodians as collateral in DeFi lending markets without moving them out of custody. The product aims to unlock liquidity from large custodied asset pools that have remained sidelined due to operational and regulatory friction around transferring tokens. CustodySync is designed to connect custodians, asset managers and DeFi lending protocols so institutions can borrow against holdings while maintaining existing custody arrangements. The move matters because it could expand the pool of collateral available to DeFi lenders and deepen on-chain credit markets. What to watch next is which custodians and lending protocols integrate with CustodySync and how much institutional collateral actually flows into DeFi.
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CustodySync, Chainlink (LINK)
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