Aave Labs has introduced Horizon, a credit protocol focused on institutional investors, merging traditional finance with decentralized finance (DeFi). The core element of the protocol is the use of tokenized products as collateral.
RLUSD: The Heart of Horizon
Aave Labs stated that the stablecoin RLUSD is a critical tool for enhancing the efficiency of the Horizon protocol. Reece Merrick, Ripple's director for the Middle East and Africa, emphasized the importance of stablecoin integration at this level.
Bridging DeFi and Traditional Finance
The Horizon protocol aims to align familiar financial instruments with crypto-based solutions for institutional investors. Collaborating with partners like Superstate and Securitize, Aave facilitates the tokenization of assets such as U.S. Treasury bonds and corporate bonds.
Benefits of the Horizon Protocol
Horizon’s design stands out by combining DeFi’s speed and transparency with the security and institutional standards of traditional finance. Aave Labs’ initiative marks a significant turning point for the broader institutional acceptance of crypto-based finance.
The Horizon protocol from Aave Labs represents a significant development in merging traditional finance with decentralized solutions, opening new opportunities for institutional market participants.
