Custodied assets can remain in custody to participate in DeFi lending, Chainlink launches CustodySync solution

Odaily News: Chainlink has launched the CustodySync solution, allowing qualified custodians to enable institutional clients to participate in the DeFi lending market while assets remain in custody. Anchorage Digital, a federally chartered digital asset bank in the United States, is the launch partner. The solution publishes custody balances on-chain through Chainlink Proof of Reserve and issues restricted-transfer receipt tokens representing custodied assets as collateral; custodians and lending protocols use the same price data provided by Chainlink Data Feeds and Data Streams to calculate LTV, and when liquidation is triggered, a designated collateral agent executes the sale.