Chainlink Launches CustodySync with Anchorage for Access to DeFi Markets

On October 26, Chainlink announced CustodySync – a solution that connects custodians' collateral systems with on-chain credit markets and coordinates balances, prices, and credit activity throughout the loan term. The first launch partner was Anchorage Digital Bank, operating under a federal license supervised by the Office of the Comptroller of the Currency.

In the architecture, Chainlink Proof of Reserve publishes custodial balances on-chain, and a non-transferable token receipt represents the collateral within the credit market. This token does not grant rights to the underlying assets outside of this integration, and the borrowed funds are delivered directly from the market to the borrower. Chainlink Runtime Environment coordinates permitted actions and updates custodian records, while Data Feeds and Data Streams provide comparable prices to both systems. Upon reaching the liquidation threshold, an appointed collateral agent conducts the sale, and CustodySync records the revenue obligations on-chain until final settlement. "Institutions should not have to choose between qualified custody and on-chain liquidity," said Nathan McCauley, CEO and co-founder of Anchorage Digital.

Anchorage uses Atlas Collateral Management – an agency service for institutional lending with a division of responsibility for collateral custody and transaction monitoring. According to a document dated April 28, Anchorage Innovations LLC acts as the typical collateral manager, while a U.S. bank or Singaporean branch serves as the custodian. Before financing, parties sign bilateral agreements and define acceptable assets, LTV thresholds, cure periods, and countermeasures; the borrower deposits collateral into a segregated wallet. Atlas monitors positions around the clock: upon breaching the threshold, notification, partial or full liquidation, or transfer of collateral to the secured party is possible, and a critical threshold can trigger immediate actions.

Separately, Anchorage described its collaboration with Spark: institutional borrowers take loans secured by Bitcoin placed in Anchorage Digital Bank. Anchorage acts as Spark's collateral agent, monitoring LTV, payments, margin calls, and liquidations through Atlas; the identities of borrowers and the aggregate volume are not disclosed.