Aave Labs, the team behind the leading DeFi lending protocol, has unveiled Horizon — a new institutional lending platform that merges traditional finance (TradFi) with decentralized finance (DeFi).
The platform enables tokenized real-world assets (RWAs) to be used as collateral, marking a significant step toward mainstream adoption of blockchain-based finance.
RLUSD at the Core of Horizon
Ripple’s regulated stablecoin, RLUSD, has emerged as one of the cornerstones of Horizon. Aave Labs described it as vital for ushering in “a new era of efficiency for on-chain finance.” Reece Merrick, Ripple’s managing director for the Middle East and Africa, welcomed the development, noting that it was “great to see RLUSD play a big role” in the new platform.
The launch builds on the strong demand for RLUSD since Aave first integrated it earlier this year. In April, $76 million worth of the token was supplied within a single day, and Ripple executives have said stablecoin growth is “exploding,” with supply expanding sharply in recent months.
Bridging DeFi and TradFi
Horizon is designed to bridge tokenized real-world assets with on-chain liquidity. Supported assets include tokenized U.S. Treasuries, corporate bonds, and money market funds, provided through partners like Superstate and Securitize.
In addition to RLUSD, Horizon also supports Circle’s USDC and Aave’s native stablecoin, GHO. Early collateral options already available include Circle’s USYC yield fund and VanEck’s VBILL fund, giving institutions a compliant and blockchain-based framework for yield generation and borrowing.
Why It Matters
By making institutional-grade tokenized products usable as collateral, Aave Labs is positioning Horizon as a gateway between traditional finance and DeFi markets. With RLUSD at its core, the platform underscores how regulated stablecoins are becoming the backbone of next-generation financial infrastructure.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/ripple-stablecoin-demand-explodes-now-aave-is-making-it-a-collateral-standard/