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With Horizon, Aave offers institutional investors a compliant way to deploy their idle liquidity into DeFi.<\/p>\n
Aave Labs, the team behind Aave<\/a>, the largest lending protocol in decentralized finance (DeFi) with over $40 billion in total value locked (TVL), has launched a new platform called Horizon, which enables institutions to borrow stablecoins using tokenized real-world assets (RWAs<\/a>) as collateral.<\/p>\n The platform, built on Aave\u2019s protocol, is designed to operate around the clock while combining compliance frameworks with on-chain liquidity, the firm said in a Wednesday press release shared with The Defiant.<\/p>\n With Horizon, institutions can tap stablecoins using traditional assets, such as U.S. Treasuries and institutional funds, as well as crypto-focused funds and AAA-rated CLOs, thereby putting idle liquidity to work that\u2019s typically locked in slower, legacy systems.<\/p>\n Under the hood, the platform uses Chainlink<\/a> SmartData, starting with Onchain NAV, to automatically track the value of tokenized assets, letting institutions borrow stablecoins in real-time. Aave Labs also plans to add tools like Proof of Reserve and SmartAUM later to facilitate easier risk management.<\/p>\n Aave Labs founder Stani Kulechov said in the announcement that the platform is built for the \u201cgrowth of tokenized real-world collateral.\u201d<\/p>\n The launch includes a network of partners spanning asset managers, tokenization providers, and stablecoin issuers, including Centrifuge, Superstate, Circle, RLUSD, VanEck, Hamilton Lane, and WisdomTree.<\/p>\n The launch comes as the tokenized RWA market has grown<\/a> to $26.6 billion, with Ethereum accounting for more than 51% of the sector, according to RWA.xyz<\/a>.<\/p>\n The largest vehicle is BlackRock\u2019s BUIDL fund, focused on U.S. Treasuries, with nearly $2.4 billion in assets, followed by Tether\u2019s tokenized gold at $1.26 billion and Paxos\u2019 tokenized gold at over $945 million.<\/p>\nTargeting RWA Growth<\/h2>\n