RLUSD is a regulated stablecoin powering Aave Labs’ new Horizon platform, enabling tokenized U.S. Treasuries, money-market funds and corporate bonds to be used as on-chain collateral and bridging DeFi and TradFi for institutional lending by providing on-chain liquidity and settlement rails for institutions.
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RLUSD is a core collateral option on Aave Horizon for institutional tokenized assets.
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Horizon supports multiple stablecoins and tokenized yield products to connect traditional finance and DeFi.
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Early demand: $76 million of RLUSD supplied in one day on Aave integrations (reported by COINOTAG).
RLUSD: Ripple’s regulated stablecoin powers Aave Labs’ Horizon platform to tokenize Treasuries and enable institutional DeFi-TradFi lending. Learn more.
What is RLUSD’s role in the Horizon platform?
RLUSD is a regulated stablecoin used on Aave Labs’ Horizon platform as a primary on-chain settlement and collateral asset. It enables institutions to post stable, compliant liquidity while Horizon tokenizes traditional assets for use in institutional DeFi lending.
How does Horizon bridge DeFi and TradFi?
Horizon bridges DeFi and TradFi by enabling tokenization of traditional instruments — such as U.S. Treasuries, corporate bonds and money-market funds — so they function as smart-contract collateral. Partners named by Aave Labs include firms focused on regulated asset tokenization and custody, enabling compliant issuance.
Initial liquidity options include Ripple’s RLUSD, Circle’s USDC and Aave’s GHO. Horizon also lists yield products such as Circle’s USYC yield fund and VanEck’s VBILL fund as collateral-eligible instruments.
How significant is early RLUSD demand?
Demand for RLUSD on Aave integrations was notable: COINOTAG reported $76 million worth of RLUSD supplied in a single day after initial support. Ripple executives have publicly highlighted the stablecoin’s role, with Reece Merrick noting it is “great” to see RLUSD “play a big role” in Horizon and Jack McDonald describing stablecoin growth as “exploding.” These quotes underscore institutional interest.
Frequently Asked Questions
Can institutions use tokenized U.S. Treasuries as collateral on Horizon?
Yes. Horizon supports tokenized U.S. Treasuries and other regulated fixed-income instruments, enabling them to be posted as collateral for borrowing and liquidity operations within Aave’s institutional pools.
Which stablecoins are supported on Horizon?
From launch, Horizon supports RLUSD, Circle’s USDC and Aave’s native GHO as primary stablecoin options for supplying liquidity and settling transactions on-chain.
Key Takeaways
- RLUSD integration: RLUSD is positioned as a compliant, institutional-grade stablecoin for Horizon collateral and settlement.
- DeFi-TradFi bridge: Horizon tokenizes traditional assets (Treasuries, bonds, money-market funds) to be used on-chain.
- Early market interest: Significant supply activity (reported $76M in one day) signals institutional appetite for tokenized, stable collateral.
Conclusion
RLUSD plays a central role in Aave Labs’ Horizon platform by providing regulated stablecoin liquidity that helps convert tokenized traditional assets into usable on-chain collateral. As Horizon lists multiple collateral options and partner tokenizers, the platform aims to increase institutional access to DeFi lending while preserving compliance and settlement efficiency. Monitor institutional integrations and official updates from Aave Labs and Ripple for further developments.
