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Ripple’s RLUSD Becomes Core Collateral on Aave’s Horizon

Olivia Stephanie by Olivia Stephanie
August 28, 2025
Marcel Knobloch

Edited by Marcel Knobloch on August 28, 2025

Ripple’s RLUSD Becomes Core Collateral on Aave’s Horizon
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  • RLUSD joins USDC and GHO as core collateral on Aave Horizon, fueling institutional DeFi adoption.
  • Ripple partners with SBI to launch RLUSD in Japan by 2026 under regulated financial licenses.

Aave Labs has rolled out a new platform called Horizon. The service is designed for institutions and focuses on tokenized assets as collateral. By supporting these products, Horizon aims to connect traditional markets with decentralized finance.

Enabling a new era of efficiency for onchain finance.$RLUSD is a crucial piece of @Aave's Horizon platform, allowing tokenized products to be used as collateral and flow more efficiently across markets. https://t.co/KC0D8Wi4zp

— Ripple (@Ripple) August 27, 2025

Meanwhile, the platform makes it possible to tokenize assets such as US Treasuries, corporate bonds, and money market funds. These can then be used directly in lending markets. To support this effort, Aave has partnered with Superstate and Securitize, both active in tokenization services.

RLUSD Added as Core Stablecoin

Ripple’s regulated stablecoin, RLUSD, is one of the key assets powering Horizon. It sits alongside Circle’s USDC and Aave’s native GHO as part of the initial collateral set. Other options include Circle’s USYC yield fund and VanEck’s VBILL fund.

Reece Merrick, Ripple’s managing director for the Middle East and Africa, said it was “great” to see RLUSD playing a big role on Horizon. The stablecoin already saw strong interest earlier this year when Aave first enabled lending and borrowing. On its first day live in April, more than $76 million worth of RLUSD was supplied to the platform.

Expanding Role of Stablecoins

Ripple has been positioning RLUSD for broader adoption. Jack McDonald, Ripple’s senior vice president of stablecoins, said in July that demand for stable assets was “exploding.” RLUSD is seen by the company as a way to bring scale and regulatory certainty to on-chain finance.

As BTCDaily reported, Ripple is also pushing RLUSD into new markets. In partnership with SBI Holdings, the stablecoin will launch in Japan in early 2026.

The rollout will be managed by SBI VC Trade, which holds multiple licenses in Japan, including approval to operate as the country’s first Electronic Payment Instruments Exchange Service Provider.

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shield icon BTC Daily is committed to providing readers with factual, unbiased, and well-researched content. Our editorial team follows strict sourcing practices and every piece is carefully reviewed by industry experts and senior editors to maintain the highest standards of quality and integrity.
Olivia Stephanie

Olivia Stephanie

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Olivia Stephanie is an experienced FinTech blogger with in-depth knowledge of financial markets. Her strong passion for economics and finance led her to explore emerging blockchain technology and the dynamic cryptocurrency markets in depth. She holds a Bachelor of Arts in Journalism from the University of Nairobi. Olivia works as a journalist at BTC Daily and also writes for other leading crypto platforms such as CryptoPotato and AMBCrypto.
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This article is provided for informational purposes only and does not constitute financial, investment, legal, or tax advice. Cryptocurrency and financial markets are highly volatile and involve significant risks, including possible loss of capital. Readers should conduct their own research and consult licensed professionals before making any financial decisions. Parts of this content were created with the assistance of AI, but all material has been carefully reviewed, edited, fact-checked, and narrated by humans. No liability is assumed for any losses resulting from reliance on this information.

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