Aave Labs, the technology company behind the Aave protocol, has recently launched a new institutional lending platform called 'Horizon', which bridges traditional and decentralized finance.
Role of RLUSD in the New Platform
A key element of the new platform is Ripple's RLUSD stablecoin, which, according to the company, aims to enable 'a new era of efficiency for on-chain finance.' Reece Merrick, managing director of Ripple for the Middle East and Africa, commented that it's 'great' to see the stablecoin 'play a big role' in Horizon.
Integration of DeFi and TradFi
The new product is designed to bridge decentralized finance with traditional finance by allowing the tokenization of various assets, such as U.S. Treasuries, corporate bonds, and money market funds. This is made possible through partnerships with companies such as Superstate and Securitize.
Supported Assets and Collateral
In addition to RLUSD, Aave's Horizon platform also supports Circle's USDC and Aave's native GHO token. At launch, several collateral options are available, such as Circle’s USYC yield fund and VanEck’s VBILL fund.
The 'Horizon' platform by Aave marks a significant advancement in the interaction between traditional and decentralized finance, offering new opportunities for institutional clients.
