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According to Jinse Finance, as reported by CoinDesk, Babylon announced a partnership with decentralized lending protocol Aave to support native Bitcoin as collateral in Aave V4, without the need for wrapped tokens or custodial intermediaries.
This collaboration will combine Babylon's trustless vaults with Aave's hub-and-spoke architecture, allowing users to deposit native BTC on the Bitcoin base layer and borrow assets such as stablecoins on the Aave market. Testing is expected to begin in early 2026, with a product launch planned for April.
Babylon co-founder David