
According to Babylon and Aave Labs, their partnership will integrate native Bitcoin into Aave V4 as collateral without wrapping or centralized custody, targeting a Q2 2026 launch pending governance approval.
Babylon Labs and Aave Labs have announced a strategic partnership to create a native Bitcoin-backed Spoke within Aave V4. The integration will allow Bitcoin to be used directly as collateral without wrapping or relying on centralized custodians, leveraging Babylon’s trustless vaults and Aave’s architecture. The project aims for a Q2 2026 launch, subject to governance approval.