Aave Labs has launched Horizon, an innovative lending platform tailored for institutional borrowers seeking access to stablecoin loans backed by tokenised real-world assets. This service allows qualified users to acquire stablecoins, including USDC, RLUSD, and Aave’s GHO, using various asset classes, such as tokenised US Treasuries, corporate bonds, and collateralised loan obligations as collateral.
The platform accommodates collateral originating from multiple issuers, including Superstate’s short-duration US Treasury and crypto carry funds, Circle’s yield fund, and Centrifuge’s tokenised offerings like JAAA and JTRSY. Within the ecosystem of launch partners are esteemed names like VanEck, Securitize, Hamilton Lane, WisdomTree, Ant Digital Technologies, Ethena, OpenEden, and Chainlink.
### Key Features of Horizon
Horizon distinguishes itself from typical platforms by operating on a permissioned version of Aave V3, integrating regulatory controls directly at the token level while maintaining an open and composable stablecoin market. The collateral tokens involved are managed by issuers to ensure regulatory compliance, whereas lenders in the stablecoin market can participate without needing prior approval.
Borrowers are empowered to pledge these tokenised securities, allowing them to access stablecoins with ease and predictability, ensuring liquidity is consistently available. Crucially, Chainlink’s data services provide real-time valuations for these tokenised funds through tools like NAVLink and Onchain NAV, affirming that the collateral remains accurately priced and that loans are continually overcollateralised.
Aave Labs asserts that Horizon is geared towards realising the untapped potential of the tokenised asset market, which currently boasts over AU$38.38 billion (US$25 billion) in on-chain assets, although its application in decentralised finance has historically been limited. This initiative is viewed as a significant stride towards merging traditional financial products, such as bonds and Treasuries, with blockchain technology, thereby paving the way for new opportunities in institutional capital deployment.
In summary, Horizon by Aave Labs represents a forward-thinking approach to lending in the context of blockchain and decentralised finance, aiming to integrate traditional finance’s robustness with the innovative potential of digital assets.
