TechFlow, Dec 3 — According to CoinDesk, Babylon announced a collaboration with decentralized lending protocol Aave to support native Bitcoin as collateral in Aave V4 without wrapped tokens or custodial intermediaries.
Users will be able to deposit native BTC and borrow assets such as stablecoins from Aave markets. Testing is expected to begin in early 2026, with product launch planned for April. Babylon co-founder David Tse said that even if just 5% of Bitcoin's supply enters lending protocols, the scale would far exceed the current market.




