Grove integrates with Aave Horizon to supply RLUSD and USDC liquidity

Overview

Grove is integrating with Aave Horizon, the new Aave market designed for institutions to borrow stablecoins against tokenized Real World Assets. Grove will supply RLUSD and USDC liquidity to help deepen the market for qualified borrowers. Pending governance approval.

Why this matters

Tokenized assets have scaled into the multi tens-of-billions, but value is unlocked when these assets finance real activity. Liquidity at the point of need creates better execution and turns tokenization into working capital for onchain finance.

What is Aave Horizon

Horizon is a lending market on Ethereum where qualified institutions post RWA collateral and borrow stablecoins. Stablecoin supply is permissionless for users who wish to earn yield from institutional borrowers. At launch, the market supports USDC, RLUSD, and GHO on the supply side, with collateral from issuers such as Superstate and Centrifuge. Chainlink NAVLink is used for collateral data, and risk analysis is provided by Llama Risk with Chaos Labs participation.

What Grove will supply

Grove will supply RLUSD and USDC to Horizon. This adds depth for RWA backed borrowing and gives Grove an additional venue to deploy stablecoins productively.

Why RLUSD alongside USDC

RLUSD is Ripple’s USD stablecoin, designed to be fully backed and redeemable 1:1, and natively issued on Ethereum and the XRP Ledger. BNY serves as the primary reserve custodian. Pairing RLUSD with USDC diversifies the stablecoin mix and can improve resiliency for the pool.

Risk and governance

Horizon runs on Aave Protocol v3.3. Borrowing is restricted to qualified users based on issuer criteria for each RWA token. Parameters like loan to value, liquidation thresholds, and per asset caps are set through Aave governance.

Who this helps

• Institutions: deeper stablecoin depth, tighter spreads, cleaner execution when borrowing against tokenized Treasuries and funds.
• Issuers and platforms: clearer utility for tokenized assets as eligible collateral within a DeFi market.
• Suppliers: permissionless access to supply stablecoins into an institutional credit venue.

Timing

We published the forum post on October 16, with initial supply to follow governance approval.

Thank you

Thank you to the teams at Aave and Ripple for the collaboration and infrastructure that make this possible.

Important information and disclaimers

This post is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any product or venue described is available only to eligible participants and subject to applicable laws, risk parameters, and final documentation. Stablecoins and DeFi protocols carry risk, including loss of principal, smart contract risk, and market risk. Performance is not guaranteed.