Chainlink, a blockchain oracle platform, has launched its news feature ‘CustodySync’ today. CustodySync is a solution designed to connect institutional digital asset custody with decentralized finance (DeFi) lending markets. It allows lending while assets remain under qualified custodians’ control. Anchorage Digital is the first custodian to adopt the platform. Both platforms have announced this news via their official X accounts.

Introducing Chainlink CustodySync, a new solution that lets qualified custodians give their institutional clients access to DeFi lending markets, all while assets remain securely in custody.

With @Anchorage as the official launch partner, together we’re establishing a new standard for institutional DeFi.

CustodySync keeps custody and lending systems in sync across the full lifecycle of a loan:

→ For custodians: faster time to market and lower operational overhead, with custodian-managed controls
→ For lending markets: independent, verifiable data and a consistent risk framework
→ For institutions: passive capital becomes productive capital

More than $80 billion sits in DeFi lending markets. Meanwhile, the roughly $700 billion in digital assets under custody is less than 0.5% of all $250 trillion in traditional assets under custody. The opportunity to connect traditional institutional capital to onchain finance remains vast.

Large institutions have lacked a secure way of accessing these markets. Regulations require many of them to keep their digital assets with a qualified custodian, a firm that meets specific requirements for holding assets on behalf of clients, and custody systems were never built for DeFi. Even when custody and lending systems are connected, inconsistent loan valuations can trigger premature liquidation or delayed liquidations, exposing borrowers and lenders to significant financial risk.

@Anchorage, home to the first federally chartered digital asset bank in the U.S., is the first qualified custodian to adopt CustodySync, connecting its institutional clients to DeFi lending markets while their assets remain in regulated custody.

Institutional capital no longer has to choose between the security of custody and the liquidity of DeFi.

With Chainlink, it gets both.

— Chainlink (@chainlink) October 26, 2026

CustodySync addresses key challenges for institutions seeking access to onchain lending. According to Chainlink, CustodySync keeps custody records and lending markets synchronized throughout the loan lifecycle. This includes borrowing, repayment and potential liquidation.

How CustodySync Connects Custody and DeFi

CustodySync uses Chainlink Proof of Reserve to publish verifiable custody balances onchain. Transfer-restricted receipt tokens representing custodied assets can then be used within lending markets without requiring direct control of the underlying assets.

Chainlink Data Feeds and Data Streams provide price information to custodians and lending protocols. This helps them calculate loan-to-value ratios consistently. This approach aims to reduce discrepancies in collateral valuations that could lead to premature liquidations.

If collateral breaches a liquidation threshold, the appointed collateral agent manages the process through its own channels. Meanwhile, CustodySync helps keep onchain records aligned with settlement activity.

Anchorage Digital Becomes Launch Partner

Anchorage Digital Bank will use CustodySync to connect institutional clients with DeFi lending opportunities while maintaining custody. Its Atlas Collateral Management product will also support the management of offchain collateral for onchain loans.

Chainlink estimates that DeFi lending markets hold more than $80 billion, while digital assets under custody total approximately $700 billion. The company sees an opportunity to connect institutional capital with onchain financial services.

CustodySync is designed to reduce operational complexity for custodians, provide lending protocols with verifiable data and give institutions another way to deploy otherwise idle digital assets.

The launch represents an effort to connect traditional custody infrastructure with DeFi lending. Additionally, CustodySync addresses institutional requirements for asset control, risk management and compliance.