Aave Launches DeFi Solution Based on RWA for Institutions

# Aave Labs Launches ‘Horizon’ to Bridge Traditional Finance and DeFi Aave Labs has unveiled a new initiative, ‘Horizon,’ aimed at expanding decentralized finance (DeFi) adoption among institutional investors. According to reports on the 13th, the project seeks to connect traditional finance (TradFi) with DeFi using products based on Real-World Assets (RWA), such as tokenized securities. # Expanding Institutional Access Horizon’s first product offers a structured finance solution allowing institutions to secure stablecoin liquidity using tokenized money market funds as collateral. In this process, Aave’s stablecoin, GHO, serves as the primary liquidity provider. # Enhancing GHO Utility Aave anticipates that this new product will introduce a novel revenue model for AaveDAO and enhance the utility of GHO. Horizon aims to complement Aave’s existing institutional investor services, including Arc and Aave Pro, by providing RWA-backed support in compliance with regulatory standards. The focus is on meeting the compliance and risk management requirements necessary for institutional access to DeFi. # Growing Interest in Tokenized Securities The market for tokenized securities has been rapidly growing, attracting attention from traditional financial institutions. The tokenization of assets such as stocks, bonds, and hedge funds is viewed as a critical factor for increasing liquidity, transparency, and efficiency in financial markets. This surge in interest is driving greater institutional investor involvement in blockchain-based financial products.