LlamaRisk Seeks to Freeze $1.33B Aave V3 Assets; Deutsche Bank Crypto Custody

LlamaRisk proposes freezing over $1 billion in Aave V3 collateral to strip out restaking and bridge risks, while Deutsche Bank rolls out its institutional digital asset custody service under MiCA.

1. LlamaRisk Proposes Freezing $1.33B in Assets to Refocus Aave V3 Core on Blue-Chip Collateral: LlamaRisk has proposed freezing reserves that held $1.33 billion in collateral and $1.03 billion in debt as of Nov. 9. The plan targets assets including rsETH, osETH, LBTC, and tBTC, setting their loan-to-value ratios to zero ahead of Aave V4.
2. Deutsche Bank Launches Institutional Crypto Custody Service in Europe: Deutsche Bank initiated crypto custody for institutional and corporate clients on Nov. 11, holding assets such as BTC, ETH, USDC, EURC, and EURAU under the EU's MiCA regulatory framework.
3. Barclays Increases BlackRock Bitcoin ETF Position by 48% to $187M: According to regulatory filings, Barclays raised its BlackRock IBIT ETF stake by 48% to 3.94 million shares, valued at roughly $187 million as of Sept. 30 [1]. Banks accounted for 4.9% of reported spot Bitcoin ETF holdings among early Q3 filers [1].
4. Bitcoin Covenant Design MATT Uses OP_CCV to Carry Dynamic State: The MATT covenant proposal introduces dynamic state transitions to Bitcoin by tweaking Taproot internal keys with execution data. The OP_CCV opcode checks state commitments, allowing onchain verification when paired with OP_CAT.
5. MegaETH Foundation Rebrands to MEGA and Commits $30M to AI Inference Push: The MegaETH Foundation rebranded to MEGA, earmarking $30 million for native products. The organization now has no corporate equity and operates exclusively around the $MEGA token as it plans a decentralized AI inference marketplace.
6. Bitcoin Short-Term Holders Move 47,000 BTC to Exchanges at a Loss: Short-term holders transferred 47,025 BTC with unrealized losses to exchanges in the 24 hours to midnight UTC on Nov. 11 [1]. Underwater deposits outnumbered profitable ones 27 to 1 on Nov. 10 as Bitcoin fell to $72,670 [1].
7. ECB Pushes EU Lawmakers to Pass Digital Euro Framework by Year-End: ECB Executive Board member Piero Cipollone urged the finalization of the Single Currency Package by the end of 2026 to establish a digital euro issuance date [1]. A digital euro pilot is scheduled for the second half of 2027 [1].

Numbers: Bitcoin traded at $74,626 (+1.1% 24h) with an ETH gas fee of 1 gwei, as total market capitalization hit $2.47 trillion and the Fear & Greed index read 29 (Fear).

Watch:

• Community discussion on the LlamaRisk Aave ARFC and potential votes to execute the parameter freezes.
• Remaining Q3 13F filings ahead of the deadline, including disclosures from JPMorgan and Wells Fargo.
• Technical feedback and consensus discussions among Bitcoin Core developers regarding BIPs for OP_CCV and OP_CAT.