On Monday, October 26, Chainlink introduced CustodySync. It is an interoperability solution developed in partnership with Anchorage Digital Bank to connect institutional capital with decentralized finance (DeFi) lending markets. Through this integration, clients of qualified custodians can use their held assets as onchain collateral without compromising internal security policies or withdrawing funds from regulated custody.
The tool addresses a critical market limitation: until now, more than $700 billion in crypto assets under regulated custody remained dormant due to risks associated with smart contracts and operational discrepancies. Through the Chainlink Runtime Environment (CRE), Proof of Reserve, and real-time synchronized high-frequency data oracles, both platforms unify the calculation of key metrics such as loan-to-value (LTV) and coordinate protected atomic liquidations.
With Anchorage Digital as the first official qualified custodian, CustodySync opens the door to unprecedented global institutional liquidity across DeFi protocols. As a next step, the architecture will allow for the progressive onboarding of new qualified custodians and onchain liquidity markets, establishing a standardized framework to transform passive custody capital into productive liquidity.
Source: https://chain.link/blog/introducing-chainlink-custodysync
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