Aave Just Solved Bitcoin's Wrapped-Token Problem
Aave partnered with Babylon to enable native Bitcoin lending no wrapped tokens required using trustless vaults instead of bridges.
That matters because wrapped BTC has always meant trusting a bridge or custodian. Native collateral removes that entire risk layer. Total crypto-collateralized loans hit an all-time high of $73.6B by Q3 2025, and this shift toward native BTC is the next leg of that growth.