[Aave V4 Plans to Launch Custodial Collateral Isolation Market, Initially Supporting Bitcoin as Collateral] BlockBeats news, September 16, Aave Labs initiated a community feedback request (ARFC), proposing to deploy a standalone isolated Hub-and-Spoke market on Aave V4. This market would allow institutions to use Anchorage custodial assets as collateral to borrow stablecoins. The collateral remains entirely with the custodian and does not enter Aave or Chainlink; Chainlink CustodySync will synchronize custodial balances on-chain and mint non-transferable custodial collateral certificates (CoCT, Custodial Collateral Tokens). Lending, repayment, and liquidation will all be executed via dedicated contracts, with liquidation handled off-chain by the custodian before settling debts on-chain. This proposal does not affect existing markets or reserves. The initial phase plans to launch CoCT (Custodial Collateral Tokens) backed by custodial Bitcoin as collateral. Risk parameters, limits, and interest rates are still subject to evaluation by risk management service providers and require approval via Snapshot and subsequent on-chain governance before deployment. [Original Link]