Aave’s Horizon Platform is a significant advancement in the integration of traditional finance and decentralized finance (DeFi). It allows institutional investors to borrow stablecoins against tokenized real-world assets (RWAs), addressing the gap in DeFi’s lack of institutional-grade compliance and liquidity. Horizon’s institutional-grade design integrates Chainlink’s SmartData to provide real-time asset valuation and collateral verification, ensuring transparency and trust. This aligns with regulatory frameworks and leverages blockchain’s efficiency, making DeFi accessible to institutional players. The market potential for tokenized RWAs is significant, with projections suggesting it could reach $10 trillion by 2030. Platforms like Horizon accelerate this growth by enabling institutions to deploy capital more efficiently. Regulatory momentum, such as the U.S. transition to T+1 settlement in 2024 and initiatives like the SEC’s Project Crypto, further amplifies Horizon’s impact. Critics like Circle, VanEck, and Chainlink underscore Horizon’s institutional credibility, validating the platform’s infrastructure and ensuring dynamic collateral values. Horizon’s implications for capital markets are profound, as it could democratize access to liquidity while preserving regulatory compliance. Institutions gain 24/7 borrowing capabilities, while DeFi participants earn yields on stablecoins backed by real-world collateral. Aave’s Horizon Platform is a structural catalyst for the tokenization of global finance, unlocking trillions in value while setting new standards for transparency and efficiency.