Institutions Fuel $50M Surge on Aave Horizon, Yet Lending Reveals a Twist

TLDR

• Aave Horizon crossed $50 million in deposits only days after its launch.
• Borrowing activity has reached $6.2 million with USDC making up almost all of it.
• RLUSD has attracted the largest share of deposits with $26.1 million.
• USDC deposits stand at $8 million and it leads borrowing demand at $6.19 million.
• Other assets like GHO and tokenized Treasuries have not yet gained borrower traction.

Aave Horizon has quickly surpassed $50 million in deposits within days of its launch. Borrowing activity reached $6.2 million, primarily in USDC. The inflow highlights growing institutional demand for tokenized assets and on-chain credit markets.

Aave Horizon Grows as RLUSD Dominates

Deposits in RLUSD dominate the market, reaching $26.1 million within days. This share confirms RLUSD as a major liquidity source. Aave Horizon continues to attract institutional participants seeking exposure to regulated tokenized assets.

The platform organizes assets into segregated pools for efficiency. These pools separate tokenized real-world assets from stablecoin liquidity. Qualified participants provide collateral, and liquidity providers supply stablecoins for lending.

Aave Labs said, “The system is designed to bridge traditional finance with on-chain credit.” Therefore, RLUSD adoption demonstrates significant early trust in the model. The token remains the largest contributor to Aave Horizon deposits.

USDC Leads Borrowing Activity

USDC accounts for nearly all borrowing activity, reaching $6.19 million. Deposits in USDC also total $8 million, signaling strong dual-side demand. Institutional borrowers are clearly choosing USDC as their preferred stablecoin.

The borrowing market benefits from collateralized tokenized assets supplied into pools. In return, liquidity providers earn yield from institutional borrowers. This arrangement supports a two-sided lending environment within Aave Horizon.

Other supported assets, including GHO and tokenized Treasuries, have not yet seen borrower traction. However, demand may increase as institutional adoption expands. Aave Horizon continues to show clear borrowing trends in USDC.

GHO Shows Limited Demand on Aave Horizon

GHO deposits remain available but show limited borrowing activity. Institutional borrowers have not yet chosen GHO as a funding source, but it remains positioned as a core liquidity option.

Collateral assets include offerings from Superstate and Centrifuge. These include USTB, USCC, JTRSY, and JAAA, supporting institutional-grade access. Aave Horizon integrates them through permissioned collateral pools.

The platform will also add USDt-b, Ethena’s synthetic yield-bearing stablecoin. This expansion is expected to diversify borrower options further. Aave Horizon plans to build a balanced and scalable lending environment.

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