Aave DAO approved an ARFC proposal on November 9, 2026, to enable native Bitcoin as collateral on Aave V4 through Babylon Trustless Bitcoin Vaults (TBV), according to a Babylon post on X cited by PANews. The proposal received 100% support.
Proposed route: native BTC collateral, borrowing on Aave
Under the proposed integration, Bitcoin holders would lock native BTC in a self-custodial arrangement and borrow assets such as USDT and USDC. Babylon says this would require no wrapping, cross-chain bridge or third-party custody protocol.
The distinction is between using native BTC as collateral and using wrapped assets such as WBTC or cbBTC. While the product is named “Trustless Bitcoin Vaults,” the supplied report does not detail its verification mechanism or trust assumptions.
Terms and remaining approval
The integration’s collateral factors and borrowing rates would be comparable to those for WBTC and cbBTC on the Aave V4 Core Spoke. Aave DAO and Babylon would share the related revenue, with a portion allocated to AAVE and BABY buybacks.
The ARFC vote was not the final activation step. According to the report, the proposal would next move to the final AIP stage for activation on Ethereum mainnet.
Original publication: November 9, 2026, at 23:41:55 (UTC+8). Source: PANews, citing Babylon on X.
