Aave Labs published an ARFC on the Aave governance forum on Sept. 14, asking for approval to deploy a new Aave V4 Isolated Hub and Spoke structure. The proposal is designed to let institutionally custodied collateral be used to back stablecoin borrowing on Aave. Under the setup, institutional borrowers would keep collateral with Anchorage for the full life of the loan, while on-chain balances would be represented by non-transferable custody collateral tokens, or CoCT, minted and burned by Chainlink-designed CustodySync. Borrowers would stake CoCT on the Spoke and draw stablecoins from the Isolated Hub. The proposal says synchronization between the custodian and Aave, including liquidation events across the loan lifecycle, would run through Chainlink infrastructure. Its scope is limited to a single Isolated Hub and a single Spoke governed by Aave DAO, with no changes to existing hubs, spokes, or reserves. The initial launch plan covers one CoCT tied to BTC held in custody by Anchorage, before the process moves from ARFC discussion to Snapshot and then a final AIP if supported.
On Sept. 14, Aave Labs put an ARFC on the Aave governance forum, asking for approval to launch a new Aave V4 Isolated Hub and Spoke. The idea: let institutionally custodied collateral back stablecoin borrowing.
If the proposal moves ahead, institutional borrowers would post collateral with Anchorage and leave it in custody for the life of the loan. That custody balance would show up on-chain as a non-transferable custody collateral token, or CoCT. Minting and burning would be managed by CustodySync, a system built by Chainlink.
Borrowers would stake CoCT on the Spoke and borrow stablecoins from the Isolated Hub. And yes, the proposal says the entire loan lifecycle, liquidation included, would stay synchronized between the custodian and Aave through Chainlink infrastructure.
The plan is narrow. Just one Isolated Hub and one Spoke, both governed by Aave DAO. It does not alter any existing hub, spoke, or reserve.
The underlying assets would stay in custody the whole time. Anchorage would keep the assets as custodian and act as the account control protocol counterparty. Chainlink would not hold the assets.
CoCT is described as a transfer-restricted ERC-20. It can be used only by the Hub, the Spoke, and CustodySync. CustodySync alone would have minting and burning rights, and each borrower position would map to one contract.
The first rollout would use one CoCT linked to BTC held in custody by Anchorage. After that come the ARFC discussion, then a Snapshot vote if the proposal gets support, and then submission of an AIP with the final parameters.
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