Aave introduces Custodied Collateral Lending for institutional adoption

Aave has expanded its institutional strategy by launching Custodied Collateral Lending, allowing institutions to borrow stablecoins without moving assets off-chain. Through a collaboration with Anchorage and Chainlink, assets remain with a custodian while a non-transferable CoCT token acts as on-chain collateral. This mechanism uses Chainlink's CustodySync to verify asset existence, enabling institutional participation without altering existing Aave markets.