Chainlink Launches CustodySync With Anchorage Digital

Chainlink has introduced CustodySync to connect institutional assets held in qualified custody with decentralized finance lending markets. According to an Oct. 26 announcement by Chainlink, Anchorage Digital Bank serves as the launch partner for the integration, utilizing its Atlas platform to manage collateral and loan operations.

System Architecture and Workflow

The integration relies on transfer-restricted receipt tokens that represent custodied collateral onchain, while Chainlink supplies matching price data to both systems. Proof of Reserve publishes custody balances onchain, and borrowed funds move directly from the lending market to the borrower.

Chainlink’s Runtime Environment coordinates authorized actions and updates custody records, while Data Feeds and Data Streams supply matching prices. When a position reaches its liquidation threshold, an appointed collateral agent handles the sale, with CustodySync recording committed proceeds onchain before final settlement.

Atlas Collateral Management

Anchorage’s Atlas Collateral Management manual outlines an agency service for institutional lending, separating the responsibilities of holding collateral and monitoring transactions. Anchorage Innovations LLC typically acts as the collateral manager, using its U.S. bank or Singapore entity as custodian.

Before funding, borrowers and lenders sign bilateral agreements setting loan-to-value thresholds, cure periods, and required responses. Borrowers deposit collateral into a segregated vault or wallet, and Atlas monitors positions around the clock.

Key facts

• Chainlink introduced CustodySync with Anchorage Digital Bank as the launch partner.
• Transfer-restricted receipt tokens represent custodied collateral onchain.
• Proof of Reserve publishes custody balances onchain while Chainlink Data Feeds supply matching prices.
• Appointed collateral agents handle liquidations through Anchorage's Atlas collateral management product.