Aave Labs Launches Horizon to Develop Institutional DeFi Products
Aave Labs announced Horizon, a new initiative to accelerate institutional adoption of DeFi. Horizon will create new products that bridge the gap between DeFi’s efficient architecture and institutional requirements. Horizon’s first product will establish a structured real-world asset (RWA) solution, allowing institutions to use tokenized money market funds (MMFs) as collateral to access stablecoin liquidity.
“The era of tokenized real-world assets is here and will reshape global finance,” said Stani Kulechov, Founder Aave Labs. “To unlock unprecedented liquidity and accelerate this transformation, Horizon will create products to bridge TradFi and DeFi, with GHO as the essential liquidity source and the Aave ecosystem as its foundation. At Aave Labs, we believe that in the future all assets will be onchain, and the Aave ecosystem will serve as the bedrock for a seamless, global financial system.”
Horizon brings institutional standards to DeFi while delivering transparency, reduced costs, and 24/7 access—addressing compliance and risk management needs. A core feature is support for permissioned RWAs as collateral, enabling institutional DeFi participation with necessary controls. To support Horizon’s product launch and facilitate its integration with the Aave ecosystem, Aave Labs has proposed to the Aave DAO a licensed instance of the Aave protocol based on the existing Aave DAO framework.
Horizon will expand Aave’s institutional reach, preserve permissionless access, and generate new revenue streams for the Aave DAO—reinforcing Aave’s role as a leading liquidity provider in onchain finance. By establishing Aave’s stablecoin GHO as a key liquidity source for institutional borrowers, Horizon’s RWA product will strengthen its utility in DeFi and accelerate its adoption, providing secure and compliant access to onchain liquidity and reinforcing Aave’s leadership in the evolving financial landscape.
The adoption of real-world assets (RWAs) onchain is rapidly growing. Tokenization is reshaping financial markets by enhancing liquidity, reducing costs, and enabling 24/7 programmable transactions. Tokenized U.S. Treasuries have surpassed $4 billion in total value locked (TVL), reflecting a 408% year-over-year growth as investors seek stable, predictable yields. Yet, despite this momentum, structural gaps remain—DeFi’s open architecture was not designed to meet institutional compliance, governance, and risk management needs. Horizon aims to close this gap by providing purpose-built solutions.
About Aave Labs
Aave Labs, part of Avara, developed the fully decentralized Aave Protocol and Aave.com, an intuitive user interface for interacting with the protocol. It also created GHO, a decentralized, overcollateralized Aave-native stablecoin pegged 1:1 to the USD. Designed to store value, GHO serves as a key payment layer for the internet.
Aave Labs launched Horizon, an initiative to accelerate institutional DeFi. Horizon’s first product will introduce an institutional RWA solution, enabling institutions to use tokenized money market funds (MMFs) as collateral to access stablecoin liquidity.