CustodySync functions by connecting traditional custody records with on-chain lending protocols. Under this design, Proof of Reserve publishes custody balances to the blockchain, while transfer-restricted receipt tokens represent the collateral within the lending market. Chainlink’s infrastructure coordinates authorized actions and provides synchronized price data to both systems, ensuring that loan-to-value thresholds remain accurate across different environments.
Anchorage Digital Bank serves as the launch partner, utilizing its Atlas Collateral Management product to oversee the lifecycle of a loan. When a position approaches a liquidation threshold, appointed agents manage the sale process, with CustodySync recording the committed proceeds on-chain before final settlement. This structure allows borrowers to access liquidity without moving their assets out of regulated, qualified custody environments. Anchorage CEO Nathan McCauley noted that the integration addresses a primary institutional demand: combining the security of traditional custody with the efficiency of on-chain liquidity.

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