Aave Labs, the software technology company behind the Aave protocol, recently launched a new institutional lending platform called "Horizon."
It makes it possible to use tokenized products as collateral, bringing together traditional finance and decentralized finance.
RLUSD's role in new platform
Notably, Ripple's highly regulated RLUSD stablecoin is a crucial piece of the new platform. It is meant to enable "a new era of efficiency for on-chain finance," the company said in a statement.
Reece Merrick, the managing director of Middle East and Africa at Ripple, has commented that it is "great" to see the stablecoin "play a big role" in Horizon.
As reported by U.Today, Aave originally made it possible for users to supply and borrow the RLUSD stablecoin in April. There was significant demand for the token, with $76 million worth of RLUSD being supplied in just one day.
In July, Jack McDonald, senior vice president of stablecoins at Ripple, stated that stablecoin growth was "exploding."
DeFi and TradFi
The new product has been designed to bridge DeFi with DradF by making it possible to tokenize various assets, such as U.S. Treasuries, corporate bonds, money-market funds, with the help of partners such as Superstate and Securitize.
Apart from RLUSD, Aave's new Horizon platform also supports Circle's USDC and Aave's native GHO.
From the get-go, there are several collateral options, such as Circle’s USYC yield fund and VanEck’s VBILL fund.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team