Babylon and Aave are partnering to launch native Bitcoin collateralization lending, scheduled to go live in April 2026.

BlockBeats News, December 3rd, Babylon 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 custody intermediaries.

This partnership will combine Babylon's trustless vault and Aave's "centaur" 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 start in early 2026, with the product planned for launch in April.