Ripple’s RLUSD Integration into Aave’s Horizon RWA Market

Ripple’s RLUSD was integrated into Aave’s Horizon RWA market on August 28, 2025. This move positions RLUSD as a core collateral asset for institutional lending, bridging tokenized real-world assets with decentralized finance (DeFi).

The integration involves Ripple and Aave, highlighting a shift in collateral dynamics. Ripple is the RLUSD issuer, while Aave powers the Horizon RWA market, aiming to enhance liquidity and efficiency.

Immediate effects include increased liquidity and transaction volumes for RLUSD, which are observed on Aave’s platform. The Ethereum network sees higher utilization, indirectly affecting ETH activity and related gas fees.

The financial implications underline RLUSD’s emergence as a significant player among institutional collateral options. Meanwhile, competition with USDC and GHO intensifies, encouraging advancements in tokenized asset strategies.

Ripple’s partnership with Aave could set a precedent for broader stablecoin use in institutional markets. If successful, similar integrations may follow, supporting the DeFi ecosystem’s evolution.

Potential financial outcomes suggest a favorable trend for DeFi adoption. Regulatory scrutiny remains limited, but the sector anticipates growth in institutional participation, contingent on further adoption of tokenized asset solutions.

Reece Merrick, Senior Executive Officer, Ripple, said, “It’s great to see RLUSD play a big role in Aave’s Horizon platform, which allows tokenized products to be used as collateral in order to make flow more efficient across markets.” Source