Aave Labs launches Horizon, offering institutional stablecoin borrowing against tokenized RWAs
Aave Labs announced the official launch of Horizon on Wednesday — a new institutional platform that enables borrowing of stablecoins against tokenized real-world assets such as U.S. Treasurys and collateralized loan obligations.
Built on a permissioned instance of Aave V3, Horizon is designed to offer capital-efficient, 24/7 borrowing infrastructure that meets institutional compliance standards, according to a statement shared with The Block.
Qualified institutions can post tokenized securities as collateral and borrow stablecoins like USDC, RLUSD, and GHO with on-demand access and predictable liquidity. Regulatory compliance is enforced at the token level via issuer permissioning, while Horizon's stablecoin markets remain permissionless to preserve DeFi composability, the team said.
"Horizon is built for the growth of tokenized real-world collateral, enabling lending and borrowing at institutional scale," Aave founder Stani Kulechov added. "Horizon delivers the infrastructure and deep stablecoin liquidity that institutions require to operate onchain, unlocking 24/7 access, transparency, and more efficient markets."
The platform's initial launch partners include Centrifuge, Superstate, Circle, RLUSD, Ant Digital Technologies, Ethena, KAIO, OpenEden, Securitize, VanEck, Hamilton Lane, WisdomTree, and Chainlink.
Aave Labs initially unveiled its Horizon initiative in March, expecting it to generate new revenue streams for the Aave DAO. Horizon also serves as the umbrella for Aave Labs' broader institutional initiatives around real-world assets, including future integrations with private markets and regulated finance.
Leveraging $25 billion in tokenized RWAs
With over $25 billion in tokenized RWAs already onchain — but largely siloed in legacy infrastructure — Aave Labs argues that Horizon unlocks greater utility for these assets by enabling them to serve as real-time collateral for stablecoin loans. Supported assets at launch include the Superstate Short Duration U.S. Government Securities Fund (USTB), Superstate Crypto Carry Fund (USCC), Circle's Hashnote International Short Duration Yield Fund (USYC), Centrifuge's JAAA and JTRSY, and the VanEck VBILL tokenized treasury fund.
"The true potential of RWAs isn't just in tokenization, it's in what you can do once those assets are onchain," Centrifuge CEO Bhaji Illuminati said. "Horizon is a powerful example of how real-world assets can gain utility, liquidity, and composability when paired with purpose-built DeFi infrastructure.”
Chainlink plays a key role Horizon's architecture with its SmartData infrastructure, starting with Onchain NAV — a dataset that delivers real-time net asset values of tokenized funds directly onchain. This allows Horizon to support automated, overcollateralized lending with live valuations. Chainlink's roadmap for Horizon also includes integrations for Proof of Reserves and SmartAUM, providing transparency and auditability for underlying fund reserves and asset compositions.
"Horizon is a very exciting new chapter in Aave's development and really shows the next stage of the DeFi industry," Sergey Nazarov, co-founder of Chainlink, added. "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."
Aave Labs, part of Avara, developed the largest decentralized lending protocol, Aave. It also created GHO, a decentralized, overcollateralized Aave-native stablecoin pegged 1:1 to the U.S. dollar.
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