[Babylon Partners with Aave to Launch Native Bitcoin Collateralized Lending, Planned for April 2026 Launch] According to a report by CoinDesk, Babylon has announced a partnership with the decentralized lending protocol Aave to support native Bitcoin as collateral in Aave V4, without the need for wrapped tokens or custodial intermediaries. The 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 while borrowing stablecoins and other assets in the Aave market. Testing is expected to begin in early 2026, with the product planned for launch in April. Babylon co-founder David Tse stated that even if 5% of Bitcoin's supply enters lending protocols, the scale would far exceed the current market.