Securitize and Aave have launched Horizon, a new permissioned market enabling institutions to borrow stablecoins against tokenized real-world assets (RWAs). For the first time on Aave, institutional users can use securities like tokenized U.S. Treasury funds, credit, and equities as collateral for loans, accessible 24/7.

This collaboration bridges the gap between traditional financial assets and the DeFi ecosystem. By tokenizing RWAs, Securitize allows assets like VanEck’s short-term U.S. Treasury fund (VBILL) to become productive on-chain. This provides institutions with a novel way to access liquidity without having to sell their holdings, tapping into the efficiency and continuous availability of DeFi protocols.

The launch of Horizon signals a growing trend of integrating traditional financial instruments into the digital asset space. It allows asset managers and other institutions to unlock new utility from their holdings, representing a significant step in the convergence of TradFi and DeFi infrastructure.