Babylon and HashKey Cloud Enable Native Bitcoin Borrowing on Aave
Aave (AAVE)
Editor:
Eugene Serbin
cryptotimes.io reports that Babylon Labs and HashKey Cloud announced an integration on October 7 to enable native Bitcoin-backed borrowing. This collaboration allows HashKey clients to use native Bitcoin as collateral for loans via Aave v4 without wrapping or bridging the asset. The Trustless Bitcoin Vaults keep Bitcoin on its native blockchain while users retain ownership and control.
Borrowed stablecoins can then be deployed into yield strategies within the Aave ecosystem. The system relies on on-chain rules rather than centralized custodians or bridges. Babylon previously partnered with Ledger to allow transaction approvals directly from hardware wallets.
Aave DAO considered a proposal on May 26 to bring native Bitcoin into Aave V4 as loan collateral. This proposal sought to create Babylon Core Lending Spoke and BTC Vault Swap Spoke components. HashKey Group also joined the DTCC Digital Assets Advisory Services Industry Working Group in September.
The working group includes major financial institutions like JPMorgan Chase and Goldman Sachs. No specific launch dates or performance metrics were disclosed in the announcement.
How the market reacted
Whalio's own Binance spot order flow for AAVE, measured when this story was written up on 7 October 2026. Not the outlet's figures.
AAVE is trading at $179.71 with a 24-hour buy ratio of 46.9%, indicating near-even market participation. The 1-hour buy ratio sits at 41.0% and the 4-hour ratio at 42.9%, showing slightly weaker short-term buying pressure compared to the daily average. Volume delta is negative across all timeframes, with -$106,851 in the last hour and -$1,000,180 over four hours. This negative delta means sellers are executing larger trades than buyers over these periods. The 24-hour cumulative volume delta is -$4,672,739, confirming net selling pressure over the day. Only 5 out of 24 hours saw net buying, suggesting the market is currently dominated by sellers.
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, AAVE saw a 7-day average buy ratio of 48.3%, making today’s 46.9% slightly below the weekly norm. The 24-hour spot volume of $17,882,238 is just 0.44 times the weekly average, indicating significantly lower trading activity. This quiet volume contrasts with an 8-day price change of +8.7%, showing recent gains despite low current participation. The 8-day volume delta of -$4,826,330 aligns with the current negative flow, suggesting sustained selling pressure. Today’s trading activity is unusually quiet compared to the weekly average, with volume less than half of typical levels.