Aave plans to launch a dedicated real world asset credit market on Avalanche through its upcoming Aave V4 RWA Hub, allowing institutions to borrow against tokenized assets without selling their underlying positions.
The RWA Hub will launch with support for USA₮, Tether’s dollar backed stablecoin issued by Anchorage Digital Bank, giving institutions access to onchain dollar liquidity while using tokenized assets as collateral.
Built on Aave V4’s existing Avalanche deployment, the market will use Aave’s Hub and Spoke architecture to create specialized credit markets with their own collateral rules and risk parameters while remaining connected to Aave’s broader liquidity network.
Aave said the structure could support tokenized Treasuries, money market funds, private credit, real estate and corporate bonds.
The launch comes as the tokenized real world asset market has grown about 40% this year to more than $51 billion. Avalanche currently hosts more than $3.4 billion in tokenized assets.
Aave founder Stani Kulechov said the new market is intended to move tokenized assets beyond issuance and allow institutions to use them directly as collateral in credit markets.
USA₮ will serve as the initial borrowing asset, providing institutions with a federally regulated digital dollar option for borrowing and settlement.
Aave said the RWA Hub will also allow individual markets to isolate risk while still drawing from shared liquidity, helping institutions access capital without having to sell tokenized holdings.
The launch extends Aave’s existing presence on Avalanche and forms part of the broader rollout of Aave V4, which is designed to support specialized lending markets for different asset classes.