Skip to content

Chainlink connects custodied assets to DeFi and extends market data around the clock

Chainlink announced CustodySync on October 26 and launched Chainlink 24/7 on October 29. The services address two different problems: using regulated custody assets in DeFi and pricing tokenized markets outside normal exchange hours.

admin_wcBy · 1 min read
X Telegram Facebook
Chainlink connects custodied assets to DeFi and extends market data around the clock
· Photo: World-Crypt

CustodySync leaves collateral with a regulated custodian

Institutions can use assets as collateral for DeFi loans without transferring those assets out of regulated custody. The custodian continues to control the collateral and sends verified status updates to the lending market.

Chainlink connects custodied assets to DeFi and extends market data around the clock

Anchorage Digital Bank is the first launch partner. Its Atlas platform handles collateral settlement and management, while Chainlink connects the custody record to the on-chain loan through its runtime environment.

The system separates custody from lending

The borrower, lending protocol and custodian keep separate responsibilities. Deposits, borrowing, repayment and liquidation can use the same verified collateral record without placing the assets directly inside the DeFi protocol.

The addressable market is large: institutions hold roughly $700 billion in digital assets with custodians. The service depends on accurate updates because a delayed collateral status can affect a borrowing limit or liquidation.

Chainlink 24/7 uses prices from perpetual-futures venues

Chainlink 24/7 combines quotes from several perpetual-futures venues during weekends and other periods when traditional stock exchanges are closed. It does not present the last closing price of a closed exchange as a live market price.

Data Feeds deliver reference data to blockchains, while Data Streams provide faster updates to trading platforms. Aave is introducing the service on Horizon, beginning with tokenized United States equities.

Chainlink connects custodied assets to DeFi and extends market data around the clock

Round-the-clock data does not guarantee liquidity

Chainlink’s earlier 24/5 system had already served more than $1.6 billion in tokenized equities. Extending coverage to weekends can improve risk controls, but it cannot ensure that enough buyers and sellers are active at every hour.

Prices from weekend perpetual markets may differ from the level at which traditional exchanges reopen. CustodySync and Chainlink 24/7 improve infrastructure, but users must still account for liquidity and opening-price gaps.

Was this article helpful?

This article is for information only and is not investment advice.

admin_wc admin_wcContributor · World-CryptMore from

Comments 0

Be respectful and stay on topic.
Your email is never shown publicly.

More Altcoins news

View all