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In a significant move bridging traditional finance with decentralized finance (DeFi), Ripple's RLUSD stablecoin has been integrated as a key collateral asset on Aave's new Horizon platform. This new platform, built on a permissioned instance of Aave V3, is designed to enable institutional borrowing of stablecoins against tokenized real-world assets (RWAs) like U.S. Treasuries and corporate bonds. The partnership solidifies RLUSD's role as a crucial tool for institutional players, providing a compliant way to access on-chain liquidity. [embed]https://www.twitter.com/Ripple/status/1960794134601719944[/embed]
Enabling Institutional DeFi and Global Access
Aave's Horizon platform directly addresses the needs of institutions by combining regulatory compliance with the open, composable infrastructure of DeFi. Qualified institutions can now use tokenized securities as collateral to borrow stablecoins, including RLUSD, USDC, and Aave's native GHO. According to Jack McDonald, Ripple's Senior Vice President of Stablecoins, by "working with Aave on Horizon, we're helping extend that efficiency to tokenized products, with RLUSD enabling them to be used as collateral and flow more efficiently across markets." This collaboration marks a significant step towards unlocking the potential of the RWA market, which, while already valued at over $25 billion on-chain, has seen limited utility in DeFi until now. The integration with a major protocol like Aave is a huge validator for RLUSD and expands Ripple's footprint in the institutional DeFi space.