# Aave’s Native Bitcoin Plan Moves Forward, But Governance Has Questions

- Source: NewsBTC
- Published: 2026-10-18T16:00:00+00:00
- Category: Markets
- Original: https://www.newsbtc.com/crypto-news/aave-babylon-native-bitcoin-collateral-v4/
- Canonical: https://groundlevelnews.com/story/aave-s-native-bitcoin-plan-moves-forward-but-governance-has-questions-c401ba/

TL;DR: Babylon Labs has advanced a proposal to bring native Bitcoin collateral to Aave V4 without requiring wrapped BTC or a central custodian. The plan still faces community review, risk analysis and governance votes. Bitcoin could become collateral for Aave loans without first being handed to a custodian or converted into a freely traded wrapped token. That is the proposal Babylon Labs took to A

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