Aave Labs has launched Horizon, a new platform enabling institutional clients to borrow stablecoins against tokenized real-world assets (RWAs). The platform, a permissioned version of the Aave V3 protocol, will initially support assets such as tokenized U.S. Treasurys.

This initiative aims to bridge the gap between traditional finance and the growing on-chain ecosystem. By allowing institutions to use tokenized funds as collateral, Horizon provides a new avenue for capital efficiency and 24/7 access to liquidity.

The platform, which was formerly known as Arc, signals a renewed focus on institutional-grade products within the DeFi space. It represents a significant step in expanding the utility of stablecoins beyond trading and into structured finance, enabling more sophisticated and reliable yield strategies for institutions.