Aave Labs Unveils a New Stablecoin Borrowing Platform

Aave Labs has launched Horizon, a new platform that allows institutions to borrow stablecoins against tokenized real-world assets (RWA). 

This move puts Aave at the leading edge of institutional decentralized finance (DeFi). Horizon offers a borrowing system that is capital-efficient, compliant, and available 24/7, designed specifically for regulated organizations.

Horizon Comes With Exciting Features and Benefits

Notably, Horizon will allow qualified institutions to use tokenized U.S. Treasurys and other high-quality funds as collateral. 

In exchange, these institutions can borrow stablecoins like USDC, GHO, and RLUSD. This setup offers regular access to cash and stable assets while keeping the features of DeFi, such as transparency and flexibility.

It is also worth noting that Aave Labs is working with major companies to improve its platform for institutional investors. 

These companies include Circle, VanEck, Chainlink, OpenEden, KAIO, Athena, RLUSD, Ant Digital Technologies, and WisdomTree. These partnerships build trust and make the ecosystem more reliable and compatible, ensuring that it meets the high expectations of these investors.

Importantly, Horizon has introduced a new approach to compliance. It enforces rules at the token level, which means that only qualified entities can interact with specific assets. 

At the same time, Horizon allows permissionless stablecoin markets, keeping the open nature of decentralized finance. This two-layer system balances the needs of institutions for compliance with the push for decentralized innovation.

Aave Launches on Aptos

Recently, Aave Labs launched on the Aptos blockchain. As reported by TheCoinRise, this is Aave’s first deployment on a non-EVM (Ethereum Virtual Machine) network. This move supports Aave’s long-term plan to grow across multiple blockchains and brings its lending services to a new ecosystem.

Likewise, developers on Aptos can now use Aave’s proven lending system. They have access to helpful tools, clear documentation, and the ability to create advanced on-chain financial apps. Aave protocol currently manages tens of billions in deposits across different networks. As such, this adds credibility to the growing Aptos DeFi ecosystem.

RWA Tokenization Projected to Reach $600 Billion by 2030

Real-world assets have recorded massive growth, fuelled by an increase in Total Value Locked (TVL) on Ethena USDtb and BlackRock’s BUIDL. 

The growth of the RWA sector reflects the increasing demand from investors for safer investment options. This has been the market’s outlook since FTX and other top crypto exchanges collapsed three years ago.

Meanwhile, market observers believe there is a huge prospect for the RWAs tokenization sector. Last year, Boston Consulting Group (BCG), in collaboration with Aptos Labs and Invesco, noted that the RWA tokenization can capture 1% of the global mutual fund and exchange-traded fund by 2030. This equates to reaching $600 billion by the projected fund.