Babylon said on X that Aave DAO approved an ARFC proposal on November 9, 2026, with 100% of votes in favor, paving the way for native Bitcoin collateral on Aave V4 through Babylon Trustless Bitcoin Vaults (TBV). PANews reported the statement on November 9, 2026, at 23:41:55 UTC+8.
The approval is a governance step, not confirmation that the integration is live. According to the report, the next step is the final AIP stage to activate the integration on Ethereum mainnet.
What Babylon says the integration would enable
Under the proposed arrangement, Bitcoin holders would lock native BTC in a self-custodial setup and borrow assets such as USDT and USDC. Babylon says this would require no wrapping, cross-chain bridges or third-party custody protocols.
Collateral factors and borrowing rates would be comparable to those for wrapped assets such as WBTC and cbBTC on Aave V4 Core Spoke. Aave DAO and Babylon would share the associated revenue, with a portion allocated to AAVE and BABY buybacks.
What remains unresolved
The supplied report attributes the approval and proposed features to Babylon’s announcement; it does not provide an independent technical assessment of the custody or trust assumptions. It also gives no numerical collateral factors, borrowing rates, revenue-sharing percentages or buyback allocations.
The distinction matters: unanimous support for an ARFC proposal is not the same as mainnet activation, and the proposed buybacks remain part of the described arrangement rather than evidence of completed purchases.