Chainlink has launched CustodySync with Anchorage Digital Bank as its first partner, setting out a new way for institutions to borrow from DeFi without having to move assets into self-custody. With this service, a firm can keep its digital assets with a regulated custodian like Anchorage and still use those assets as collateral in onchain lending markets.
The key is synchronization. The custodian’s records remain the reference point for the collateral, and balances get published onchain using Chainlink’s Proof of Reserve. Inside the DeFi protocol, a restricted receipt token stands in for the actual custody asset. Chainlink’s price feeds connect both sides, making sure they use the same values and ratios when it comes to margin calls or liquidation thresholds.
That means both the custodian and the DeFi market have a synchronized view of collateral health, which should help avoid mismatches during volatile moves. Anchorage brings this into its existing Atlas Collateral Management system, so risk oversight and qualified custody remain in place.
This attempts to close one of the most persistent gaps for institutional investors. Until now, using assets in DeFi often meant breaking internal risk or compliance rules. Chainlink says about $700 billion in digital assets are held with custodians, while over $80 billion is sitting in DeFi lending markets.
This launch is about connecting those worlds, but it’s not proof of institutional appetite just yet. Actual adoption comes when more custodians, lenders, and clients clear the operational and compliance hurdles.
Chainlink’s CustodySync with Anchorage puts collateral mobility for custodial assets to the test in DeFi lending.