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Decentralized finance protocol, Aave has revealed Horizon, a platform that would allow institutions to borrow stablecoins against tokenized assets. At its inception, the platform would allow the borrowing of Circle's USDC stablecoin, Ripple USD stablecoin, RLUSD and Aave's GHO against a selection of tokenized funds.
In a tweet, Ripple Senior Executive Officer/Managing Director for Middle East and Africa Reece Merrick expressed delight at the milestone, stating: "It's great to see RLUSD play a big role in Aave's Horizon platform, which allows tokenized products to be used as collateral in order to make flow more efficient across markets."
The Horizon protocol runs on Aave V3, the biggest decentralized lending protocol with over $66 billion in assets; thus, the move positions RLUSD on the financial markets.
According to Ripple, the move enables a new era of efficiency for on-chain finance. "RLUSD is a crucial piece of Aave's Horizon platform, allowing tokenized products to be used as collateral and flow more efficiently across markets," it wrote in a tweet.
RLUSD news
Earlier in August, Gemini introduced Gemini Credit Card XRP Edition, with RLUSD stablecoin now supported for U.S. spot trading on the crypto exchange.
Ripple believes that the stablecoin market, with nearly $300 billion in valuation, is set to grow into a trillion dollar sector. To tap into this massive market opportunity, Ripple announced a partnership with SBI VC Trade that would bring Ripple USD (RLUSD) stablecoin to Japan in early 2026.
Earlier in the week, Ripple minted over 1.2 million in RLUSD in two separate transactions on Aug. 25: 707,607 and 500,000 RLUSD were minted at the Ripple USD Treasury.
On Aug. 22, a massive 20 million RLUSD were minted at the treasury. Ripple USD market capitalization has reached $687 million, indicating growth as more institutions adopt the stablecoin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team