Aave Labs Proposes Custody-Backed Stablecoin Lending Using Anchorage Assets

Aave Labs has proposed a 'custody-backed loan' structure enabling institutions to borrow stablecoins using assets held in custody by Anchorage. According to a proposal posted on September 14 to the Aave governance forum, borrowers would pledge assets to Anchorage while accessing loans without moving collateral on-chain. The collateral remains held by the custodian throughout the loan term and does not move on-chain. The proposal outlines an integrated system linking collateral balances and loan status on-chain. The structure will operate under Aave V4's modular hub-and-spoke framework, with community feedback followed by a snapshot vote. If approved, it will proceed to an on-chain governance proposal detailing final parameters.