Ripple’s RLUSD Joins Aave Horizon, Boosting DeFi and Tokenized Asset Growth

Ripple integrates RLUSD into Aave Horizon, linking tokenized assets with DeFi and boosting institutional borrowing opportunities.

Fridah Kangai
August 29, 2025
2:31 am

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Ripple’s RLUSD joins Aave Horizon, boosting DeFi institutional adoption.
Horizon enables tokenized assets as collateral for borrowing stablecoins.
Chainlink powers secure valuations, strengthening compliance within Horizon.

Ripple has expanded its DeFi footprint with the integration of its RLUSD stablecoin into Aave Labs’ Horizon market. According to the company, this move makes RLUSD a vital part of a lending system that connects tokenized assets with decentralized finance.

Recently, Aave Labs released Horizon: an institutional-grade platform created on a permissioned implementation of Aave V3. The model enables tokenized US Treasuries and collateralized loan obligations to act as security in borrowing stablecoins within a regulatory setting.

Horizontal compliance is at the token level with stablecoin markets by Horizon remaining permissionless and open. The architecture eliminates cross-application lock-in to ensure that institutions have elastic access to blockchain-based credit systems and comply with the required standard.

Institutions can borrow up to Horizon 24 hours during the day and comply with regulatory rules at the same time. The platform creates a connection between the classic markets and the DeFi lending infrastructure, aiding financial organizations in entering the digital market safely.

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RLUSD Becomes a Core Asset in Horizon

USDC has now joined RLUSD and GHO stablecoin in Horizon’s liquidity pools. Placing RLUSD in such pools generates yield and also allows borrowing activities to occur; thus, RLUSD is central to the lending process in the framework.

Ripple emphasized that RLUSD is not only a settlement token but also a liquidity driver in Horizon. The stablecoin is used as compliant collateral and positions itself as an instrument connecting tokenized securities to decentralized markets.

Chainlink Supports Horizon’s Infrastructure

Horizon relies on Chainlink technology for accurate and tamper-resistant asset valuations. Chainlink Onchain NAV ensures that collateralized loans are safe and that lenders and borrowers can act with confidence as they have access to real-time data.

https://twitter.com/chainlink/status/1960794812862619691

Further implication with Chainlink Proof of Reserves and SmartAUM is in anticipation. The features will enhance Horizon’s accountability and make it more transparent to the institutions involved in the system.

Expanding Tokenized Asset Opportunities

Ripple’s collaboration with Aave highlights its focus on tokenized asset growth. Horizon’s Ethereum implementation enables institutions to earn yield by borrowing and also enables tokenized assets to traverse markets more effectively. RAUSD improves this framework, as it can be used as reliable collateral.

Since becoming an Aave Horizon member, RLUSD has become the heart of tokenized asset lending. The integration, with the help of Chainlink infrastructure, enhances the interlinking of traditional finance and decentralized lending systems.

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