Aave announced the launch of a dedicated real world asset (RWA) credit market on Avalanche through its upcoming Aave V4 RWA Hub, allowing institutions to borrow USA₮ against tokenized assets including Treasuries, private credit and real estate without selling their underlying positions. USA₮, Tether’s dollar-backed stablecoin issued by Anchorage Digital Bank, will serve as the initial borrowing asset, providing onchain dollar liquidity for institutions. The tokenized RWA market has grown approximately 40% this year to over $51 billion. The market will use Aave’s Hub and Spoke architecture to create specialized credit markets with isolated risk parameters while drawing from shared liquidity.
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