Aave Reviews New Bitcoin-Collateralized Lending Model for Institutions

Aave, a digital asset lending platform, is reviewing a new Bitcoin collateralized loan structure for institutional investors. The model would allow institutions to borrow stablecoins through Aave without having to withdraw their Bitcoin from custodial services. According to Bitcointist, Aave Labs has proposed a solution named 'Custody-Backed Lending: Aave V4 Isolated Hub & Spoke.' The proposal involves institutional custody providers holding assets that can be used as collateral within Aave V4's framework.