Aave, the biggest player in decentralized finance, has entered the Real World Asset (RWA) industry by launching Horizon.
Horizon is a new platform that will enable stablecoin borrowing against tokenized real-world assets (RWA). In short, this platform will be able to utilize traditional financial assets, such as US Treasuries and institutional funds, as collateral to borrow stablecoins.
Horizon has launched with top blue-chip partnerships, including top companies such as Centrifuge, Circle, Ethena, VanEck, WisdomTree, and Hamilton Lane.
Aave has also partnered with Ripple, the creator of the RLUSD stablecoin, which will be available on the platform.
Initially, the eligible collateral will include assets like Centrifuge’s Janus Henderson Anemoy AAA CLO Fund (JAAA), Circle’s USYC, Janus Henderson’s JTRSY, and Superstate’s USTB. In a statement, Stani Kulechov, Aave’s founder, said:
“Horizon delivers the infrastructure and deep stablecoin liquidity that institutions require to operate onchain, unlocking 24/7 access, transparency, and more efficient markets. With Horizon, Aave is at the forefront of the move to onchain global finance.”
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Sergey Nazarov, Chainlink’s co-founder, whose platform will provide tools to support Horizon, said:
“We are very excited to be a key partner for Aave’s Horizon plan and are looking forward to enabling it to be highly secure, reliable, and connected to leading financial institutions.”
Jack McDonald, Senior Vice President, Stablecoins at Ripple, said:
“By working with Aave on Horizon, we’re helping extend that efficiency to tokenized products, with RLUSD enabling them to be used as collateral and flow more efficiently across markets.”
Horizon has a chance of succeeding because of Aave’s success and the ongoing growth of the RWA industry. Aave has grown to become the biggest player in the decentralized finance industry with over $62 billion in assets.
The RWA industry is growing, with data showing that the total amount in RWA protocols has jumped to over $26 billion. The total number of holders of RWA assets has increased by 10% over the last 30 days to 367,620.
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