Starting in September, institutions and other qualified users will be able to borrow stablecoins, via Aave, directly against tokenized assets. With Horizon, retail lenders can supply stablecoins to earn yield from institutional borrowers.
This launch arrives at a moment when tokenized assets are gaining traction among institutions but remain underused in onchain finance. Horizon aims to change that by allowing RWAs such as Treasury-backed tokens to serve as productive collateral in DeFi.
Unlocking Liquidity from Tokenized Assets
Tokenized RWAs give investors digital access to traditional instruments like Treasury bills, but they often sit in isolated pockets of blockchain networks. This has limited their utility, leaving them unable to interact with DeFi capital markets. Horizon introduces a solution by letting institutions unlock liquidity against these assets, without selling them outright.
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
For example, a fund holding tokenized Treasuries can now post them as collateral and borrow USDC, GHO, or RLUSD on Horizon. This model mirrors traditional finance practices like securities lending but uses smart contracts to automate the process and ensure transparency. By doing so, Horizon makes RWAs more useful while opening new yield opportunities for stablecoin holders.
The market launches with collateral support from Superstate, Centrifuge, and Circle, and with stablecoin supply options including GHO, RLUSD, and USDC. At the technical layer, Horizon runs on Aave Protocol v3.3 and incorporates Chainlink’s NAVLink for accurate, real-time asset valuations. Risk oversight will be managed by Llama Risk and Chaos Labs.
The market connects institutional tokenized assets with DeFi on @ethereum, enabling overcollateralized lending against RWAs within an institutional-grade compliance framework.
It also supports the permissionless supply of stablecoins. pic.twitter.com/YLrE9sqn6l
— Aave (@aave) August 27, 2025
Building a New Institutional DeFi Market
A key strength of Horizon lies in its network of institutional partners. At launch, the roster includes Ant Digital Technologies, Ethena, KAIO, OpenEden, Ripple, Securitize, VanEck, and WisdomTree. This coalition signals growing interest in blending regulated financial instruments with decentralized infrastructure.
Real-world examples highlight why this matters. Circle’s USYC token provides exposure to short-term U.S. Treasuries, a $6 trillion market that investors worldwide rely on for stability. By allowing USYC to serve as collateral, Horizon creates a direct bridge between one of the safest assets in traditional finance and the efficiency of onchain lending.
Securitize is bringing the world’s largest tokenized funds to @aave’s new Horizon market.
For the first time, institutions can borrow against RWAs like U.S. Treasuries, credit, and equities, including @vaneck_us’s VBILL.
Onchain. 24/7. pic.twitter.com/ITOyJNEd46
— Securitize (@Securitize) August 27, 2025
For stablecoin lenders, this opens access to new risk-adjusted yield streams. Instead of simply holding USDC in a wallet, a user can deposit it into Horizon and earn from institutional borrowers using tokenized bonds as collateral.
Disclaimer
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