Babylon and Aegis are partnering to bring fixed-rate credit to native Bitcoin-backed borrowing. The planned product will combine Babylon Trustless Bitcoin Vaults, Aave v4 and Aegis’ fixed-rate lending infrastructure. The solution is expected to be available in Q4 2026, subject to development and testing.
In finance, predictable costs are important for institutions. A treasury, fund or market maker needs to know what financing will cost before committing capital for a defined period. While most on-chain lending uses variable interest rates that fluctuate with market conditions, fixed-rate borrowing provides greater certainty when planning capital deployment.
For institutions, this provides greater certainty. A treasury can forecast its interest expense. A fund can calculate the full cost of a position. A market maker can compare its funding cost with how it plans to use the borrowed capital.
The upcoming collaboration is designed to give Bitcoin holders access to stablecoin liquidity without wrapping assets, bridging to other networks, or relinquishing custody. Babylon provides the native Bitcoin collateral infrastructure, Aave V4 enables borrowing against that collateral, and Aegis will deliver fixed-rate credit products tailored to both institutional and sophisticated market participants. The expected result is among the first credit products to combine native-Bitcoin collateral, self-custody, and a fixed borrowing cost.
Beyond the initial product, this integration also shows how applications can build using TBV and Aave v4. Babylon provides the native Bitcoin collateral infrastructure, Aave v4 provides the lending market, and product teams can build credit products for different users and requirements.
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