Institutions Now Borrow Stablecoins Against Real-World Assets Onchain

Aave Labs has launched Horizon, a new lending platform designed to facilitate institutional borrowing against tokenized real-world assets (RWAs) on the Ethereum blockchain. The platform allows qualified institutional investors to obtain stablecoin liquidity by using RWAs as collateral without the need to liquidate or redeem the assets. This innovation bridges the gap between DeFi and traditional finance by enabling RWAs to serve as active components within onchain capital markets.

Horizon supports a range of tokenized assets from key partners, including Superstate, Centrifuge, and Circle. At launch, available collateral options include Superstate’s USTB and USCC, Centrifuge’s JRTSY and JAAA, and Circle’s USYC, which is backed by U.S. Treasury bills. Ripple’s RLUSD and Aave’s GHO are among the stablecoins that can be borrowed by institutions. Lenders can supply assets such as GHO, RLUSD, and USDC to earn yield from institutional borrowers, with no permission required for this process.

The platform is built on Aave Protocol version 3.3 and incorporates Chainlink SmartData, including NAVLink, to provide real-time net asset values for tokenized collateral. This ensures accurate and transparent pricing for loans within the DeFi framework. Risk analysis is managed by Llama Risk, with Chaos Labs set to join as an additional risk management provider. Horizon is designed to meet regulatory compliance requirements and operates on a non-custodial model where smart contracts automatically execute borrowing and lending processes.

Horizon introduces a dual-user structure: qualified institutional investors can supply RWA collateral and borrow stablecoins, while anyone can supply stablecoins to earn yield from institutional borrowers. Collateral is managed with issuer-specific permissions and loan-to-value (LTV) ratios tailored to each asset. aTokens, representing collateral positions, are non-transferable to adhere to issuer restrictions and regulatory compliance.

Aave’s founder, Stain Kulechov, emphasized that Horizon provides the necessary infrastructure for institutions to access stablecoin liquidity on-chain. This marks a significant step in integrating RWAs with DeFi, as the tokenized asset market is expected to expand rapidly in the coming years. The platform is backed by a network of leading financial technology firms and asset managers, including Ant Digital Technologies, Ethena, OpenEden, Securitize, VanEck, and WisdomTree.

The launch of Horizon reflects Aave’s broader strategy to position itself at the forefront of institutional DeFi by leveraging RWAs. With the tokenized asset market now exceeding $26 billion and projected to grow into a multi-trillion-dollar market, Horizon aims to unlock new liquidity and yield opportunities for both institutional and DeFi participants.

Source:

[1] Aave's RWA Market Horizon Launches (https://aave.com/blog/horizon-launch)

[2] RWA News: Aave Debuts Tokenized Asset Borrowing (https://www.coindesk.com/business/2025/08/25/aave-labs-debuts-horizon-to-let-institutions-borrow-stablecoins-against-tokenized-assets)

[3] Aave Labs Debuts Horizon to Let Institutions Borrow (https://finance.yahoo.com/news/aave-labs-debuts-horizon-let-130000607.html)