Chainlink and Anchorage Digital Launch CustodySync to Bridge Custody and DeFi Lending

Chainlink has introduced CustodySync, a new integration with Anchorage Digital designed to link institutional-grade custody with decentralized finance (DeFi) lending. The workflow covers the full lifecycle of a loan: collateral deposit, borrowing, repayment, and liquidation. By keeping assets in regulated custody while enabling them to be used as collateral in DeFi protocols, CustodySync addresses a key barrier for institutional investors who want exposure to DeFi yields without relinquishing control of their assets. Anchorage Digital, a federally chartered crypto bank, provides the secure custody layer, while Chainlink’s oracle infrastructure ensures reliable data feeds for loan health and liquidation triggers. This matters because it could unlock significant institutional capital for DeFi lending markets, which have historically struggled with compliance and security concerns. The integration also signals a maturing of the crypto ecosystem, where traditional financial safeguards meet programmable finance. As more regulated entities seek passive income on digital assets, expect similar custody-to-DeFi bridges to become standard infrastructure.