TLDR
- Aave Labs’ Horizon platform enables institutional borrowing using tokenized RWAs as collateral.
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Horizon’s partners include Circle, VanEck, Chainlink, and WisdomTree, pushing institutional DeFi.
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Horizon offers a capital-efficient borrowing infrastructure with 24/7 access and compliance.
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Aave Labs unlocks over $25 billion in tokenized RWAs, increasing their liquidity and utility.
Aave Labs has officially launched Horizon, a new platform designed for institutional stablecoin borrowing. Horizon enables qualified institutions to borrow stablecoins such as USDC, RLUSD, and GHO, using tokenized real-world assets (RWAs) like U.S. Treasurys and collateralized loan obligations (CLOs) as collateral. This initiative is a part of Aave’s push to expand decentralized finance (DeFi) solutions to institutional markets while ensuring regulatory compliance.
The Horizon platform is built on a permissioned instance of Aave V3, which aims to provide capital-efficient and 24/7 borrowing infrastructure. With the launch of Horizon, Aave Labs seeks to cater to the growing demand for institutional DeFi, focusing on real-time stablecoin loans. The platform is designed to comply with institutional standards while maintaining the composability of DeFi.
Aave Labs Key Partners Supporting Horizon’s Launch
Horizon’s launch is supported by a range of prominent institutions. Among the initial launch partners are Circle, VanEck, Chainlink, and WisdomTree. These firms are crucial to Horizon’s success, contributing both expertise and tokenized assets to the platform.
Additionally, the platform integrates Chainlink’s SmartData infrastructure, which plays a key role in enabling real-time valuations of tokenized funds.
By utilizing Chainlink’s Onchain NAV data, Horizon can support automated, overcollateralized lending. This integration allows for live asset valuations and automated adjustments of collateral requirements, ensuring efficient and transparent lending practices. Sergey Nazarov, co-founder of Chainlink, expressed excitement about the project, emphasizing its role in the next phase of DeFi’s evolution.
Tokenized RWAs Unlock Greater Utility
Aave Labs aims to unlock the utility of over $25 billion in tokenized RWAs that are currently siloed in legacy infrastructures. The Horizon platform helps bridge this gap by enabling these tokenized assets to serve as collateral for borrowing stablecoins.
This unlocks greater liquidity and utility for RWAs that were previously restricted to traditional financial markets.
The supported assets at launch include tokenized funds such as the Superstate Short Duration U.S. Government Securities Fund (USTB) and Centrifuge’s JAAA. With tokenized RWAs now accessible on Horizon, Aave Labs is positioned to provide a more seamless and efficient lending environment for institutional clients.
Building for Institutional DeFi Growth
Aave Labs sees Horizon as a long-term play to support the growth of tokenized real-world collateral in the DeFi space. Horizon is designed not only to facilitate borrowing but also to enable the growth of institutional DeFi markets.
According to Stani Kulechov, Aave’s founder, the platform is built to meet the needs of institutions, offering 24/7 access, transparent processes, and more efficient markets.
Horizon as a result is part of a broader strategy for Aave Labs to integrate real-world assets into DeFi and create new revenue streams for the Aave DAO. The platform as a result is positioned to be a critical infrastructure component for the future of DeFi, bridging traditional finance with decentralized lending. Aave’s initiative is a major step forward in the institutionalization of decentralized finance and the wider adoption of blockchain-based financial services.
