Aave's Horizon RWA market has integrated the VanEck Treasury Fund (VBILL), a tokenized fund that invests in U.S. Treasury securities, as a collateral asset.

The partnership between Aave, VanEck, and Securitize positions VBILL as productive collateral within a compliant, onchain environment. Institutions can now use the VanEck Treasury Fund as collateral to access liquidity 24/7, including outside traditional market hours.

Why Horizon

Aave Horizon is a lending market designed specifically for real-world assets, and its unique design is fueling its rapid growth. The market supports native VBILL tokens instead of synthetic wrapped versions to preserve compliance with fund issuance and transfer controls, ensuring alignment with the regulated structure of the VanEck Treasury Fund.

Horizon also features a shared liquidity model, where all stablecoins are gathered into a single, unified pool. This allows new assets like VBILL to immediately access deep liquidity, avoiding the unstable rates often found in isolated markets.

As a result, Horizon has attracted significant institutional interest. Since its launch, Horizon has grown to over $450 million in net deposits, with borrowing volume now of around $135 million. This makes Horizon the largest lending market for RWAs.

Leading Institutional DeFi

The addition of VBILL to Aave Horizon is a significant development for convergence of decentralized and traditional finance. It shows how tokenized versions of high-quality, traditional assets can integrate with, and be used in, DeFi.

This integration serves as a model for how regulated assets can operate smoothly within decentralized systems. As more tokenized assets come online, platforms like Horizon will provide the foundation for new financial products.