Aave Labs Launches 'Horizon' to Bridge Traditional Finance and DeFi with Tokenized Assets

Aave Labs announced the launch of 'Horizon' on today's date, an initiative focused on bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi) through real-world asset (RWA) products. Horizon's initial offering will enable institutions to use tokenized money market funds as collateral to access stablecoin liquidity, primarily utilizing Aave's stablecoin GHO. This is expected to generate new revenue streams for the Aave DAO and enhance GHO's utility. Horizon will support permissioned RWAs as collateral, addressing institutional compliance and risk management needs. BlackRock and Franklin Templeton have also launched similar tokenized money market funds, with the total market value of issued tokenized public securities reaching nearly $2.5 billion. Aave Labs aims to address structural gaps between DeFi's open architecture and institutional requirements with Horizon.