RLUSD Is Now Key Collateral on Aave's RWA Market, Horizon

Aave has launched “Horizon,” a new institutional platform for borrowing against tokenized real-world assets.
Ripple’s RLUSD stablecoin is a core component, used for lending and borrowing against the tokenized RWAs.
Chainlink’s oracles provide the real-time, on-chain Net Asset Value (NAV) data to secure the loans.

Ripple has expanded its decentralized finance (DeFi) footprint with the integration of its RLUSD stablecoin into Aave Labs’ new Horizon market for real-world assets (RWAs).

The move is part of a broader industry push to bring tokenized real-world assets on-chain finance and a win for the XRP ecosystem, when Ripple’s Brad Garlinghouse touted wins like the Gemini card.

Enabling a new era of efficiency for onchain finance.$RLUSD is a crucial piece of @Aave‘s Horizon platform, allowing tokenized products to be used as collateral and flow more efficiently across markets. https://t.co/KC0D8Wi4zp
— Ripple (@Ripple) August 27, 2025

How Borrowing Works on Aave’s “Horizon” RWA Market?

Aave Labs announced the launch of Horizon this week, describing it as an institutional-grade platform designed to allow tokenized real-world assets, such as US Treasuries and collateralized loan obligations as collateral to borrow stablecoins.

Built on a permissioned version of Aave V3, Horizon offers 24/7 borrowing infrastructure that enforces compliance at the token level while keeping stablecoin markets permissionless for composability.

Powered by Aave and secured by @ethereum, Horizon provides RWA users with the liquidity they need for institutional DeFi.
Learn more about Horizon and why RWAs are DeFi’s trillion dollar unlock: https://t.co/ap2OdhT6i7
— Aave (@aave) August 27, 2025

Where Does Ripple Fit in AAVE’s Horizon Market?

Ripple’s RLUSD is a major component of the Horizon market, standing alongside other top stablecoins like USDC and Aave’s native GHO.

By depositing RLUSD into liquidity pools, institutions can earn yield and facilitate borrowing, which creates a vital bridge between tokenized securities and decentralized lending.

Ripple emphasized that RLUSD is a “crucial piece of Aave’s Horizon platform,” a role that elevates its status far beyond the valuation debate and places it at the center of a key DeFi innovation, just as analysts debate the reasons why Ripple’s XRP flipped BlackRock in market valuation.

What Is Chainlink’s Role?

Chainlink’s SmartData infrastructure is another key piece of AAE’s Horizon architecture.

The platform uses Chainlink’s Onchain NAV to deliver live, tamper-proof net asset values of tokenized funds directly on-chain. This data feed lets Horizon run automated, overcollateralized lending with accurate, real-time valuations.

Aave Horizon, @aave’s new institutional initiative, has adopted Chainlink SmartData, starting with NAVLink feeds, to enable institutional investors to borrow against tokenized real-world assets.
This establishes the foundation for a broader integration strategy of Chainlink… pic.twitter.com/miO48aUKdC
— Chainlink (@chainlink) August 27, 2025

Future integrations are planned for Chainlink’s Proof of Reserves and SmartAUM to further strengthen the platform’s transparency and security.

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Source: https://coinedition.com/ripple-rlusd-collateral-aave-new-horizon-rwa-market-launch/