PANews reported on March 13 that according to The Block, Aave Labs launched a new program called Horizon, which aims to develop products that enable institutional adoption of decentralized finance through real-world asset (RWA) products such as tokenized securities. According to Aave Labs, its goal is to use the Aave ecosystem as a foundation to bridge the gap between traditional finance and DeFi.
Horizon's first product will be a structured RWA solution that allows institutions to use tokenized money market funds as collateral to access stablecoin liquidity - Aave's stablecoin GHO will serve as the main source of liquidity. The company said it hopes to create a new source of income for Aave DAO and strengthen the utility of GHO in DeFi. A key feature of the Horizon plan is support for licensed RWA as collateral, which meets the needs of institutions for compliance and risk management when entering DeFi. Horizon is a complement to the team's previously launched institutional-focused products such as Aave Arc and Aave Pro.
