Chainlink Launches CustodySync Solution to Support Custodied Assets in DeFi Lending

Chainlink has launched the CustodySync solution, allowing qualified custodians to enable institutional clients to participate in the DeFi lending market while retaining custody of their assets. Anchorage Digital, a federally chartered digital asset bank in the United States, is the inaugural partner. The solution publishes custodial balances on-chain via Chainlink Proof of Reserve and issues tokenized certificates representing the custodial assets with transfer restrictions as collateral. The custodian and the lending protocol use the same price data provided by Chainlink Data Feeds and Data Streams to calculate the Loan-to-Value (LTV) ratio, and in the event of liquidation, the designated collateral agent executes the sale.

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