Babylon and HashKey Cloud Enable BTC Collateral on Aave v4
Aave (AAVE)
Editor:
Eugene Serbin
Crypto-economy.com reported that Babylon Labs has announced a partnership with HashKey Cloud to integrate Trustless Bitcoin Vaults. This infrastructure allows Bitcoin holders to use native BTC as loan collateral within Aave v4 liquidity markets. The integration eliminates the need for wrapped tokens, cross-chain bridges, or centralized intermediaries.
Users can lock capital in Babylon’s self-custodial vaults to borrow stablecoins like USDC or USDT. This process optimizes capital efficiency and unlocks passive yields while retaining exposure to BTC. The technology is already operational in testing phases with Aave v4.
HashKey Cloud plans to roll out these institutional lending and yield services in the coming months. This development aims to cement Bitcoin as a premier productive asset within decentralized finance. The integration removes traditional custody risks and technical friction from the BTCfi ecosystem.
How the market reacted
Whalio's own Binance spot order flow for AAVE, measured when this story was written up on 8 October 2026. Not the outlet's figures.
Aave is trading at $174.08 with a 24-hour buy ratio of 41.7%, indicating that selling pressure has dominated the day. The 1-hour buy ratio is 44.2% and the 4-hour ratio is 47.0%, showing that buying interest is slightly higher in the short term than it has been over the full day. The volume delta is negative across all timeframes, with -$77,026 in the last hour and -$145,642 over four hours. This negative delta means that sell volume has exceeded buy volume, pushing the cumulative volume delta down to -$4,573,884 by the close. Spot volume reached $27,194,754 with 173,741 trades, but net buying occurred for only 7 of the 24 hours.
The latest daily buy ratio of 52.3% sits at the 82nd percentile of the last 322 days, against a median of 49.8% - stronger buying than most days.
Was that an ordinary day?
The same Binance spot measurements for AAVE, averaged over the days leading up to the story.
Over the preceding week, the 7-day average buy ratio was 47.4%, making today’s 41.7% reading 5.7 points lower than the weekly norm. Daily volume was 0.84x the average, indicating lighter trading activity compared to recent standards. Net buying occurred on only 1 of the 7 days, contrasting with the 7 days of net buying seen in the current 24-hour window. The price has risen 9.1% over the last 8 days despite a total volume delta of -$14,159,762 for the period. This suggests that while the coin has gained value, the underlying flow has been predominantly net selling over the longer term.