Aave and Blockdaemon Teams Up to Unlock Institutional DeFi Lending

• Aave and Blockdaemon partner to give institutions direct on-chain access to DeFi lending through non-custodial Aave Vaults.
• The collaboration integrates Horizon for tokenized real-world assets, bridging DeFi markets with traditional finance structures.

Blockdaemon and Aave Labs have announced a strategic partnership, seen as a major step in opening the door for institutions to the world of DeFi lending.

Through this partnership, Aave Vaults will serve as the primary lending provider for the Blockdaemon Earn Stack, known as the DeFi Widget. Through this integration, institutions can now directly access Aave’s on-chain capital markets, which boast over $70 billion to $75 billion in liquidity.

This eliminates the need for complex channels to access DeFi, but instead provides a more accessible mechanism.

Expanding Institutional Access Beyond Crypto

This collaboration presents new opportunities for financial institutions to channel their funds into a variety of assets, from Bitcoin (BTC) and Ethereum (ETH) to stablecoins.

Furthermore, the integration also extends to Horizon, a platform focused on tokenized Real-World Asset (RWA)-based lending. Horizon leverages technologies such as Chainlink SmartData NAVLink feeds, which were adopted in late August.

This technology allows institutions to make loans secured by RWA, while also supporting Proof of Reserve and SmartAUM features to maintain the security of on-chain loans based on treasuries, credit, and equity.

Furthermore, CNF previously reported that in early September, Aave recorded extraordinary growth, with its Total Value Locked (TVL) surpassing half of all lending protocols combined.

Of the total of approximately $78.5 billion, Aave V3 alone accounted for $69 billion. The founder is even optimistic that deposits could reach $100 billion by the end of the year. If this target is achieved, Aave will become a major player in the DeFi lending sector.

Furthermore, Blockdaemon, through its non-custodial system, ensures that institutional users retain full control of their assets.

This feature is crucial because many institutions remain hesitant to enter DeFi due to concerns about governance and security. With Vaults, assets don’t have to be transferred to a third party, allowing them to enjoy the benefits of on-chain capital markets without sacrificing control.

Aave Market Signals Amid Price Fluctuations

Interestingly, this move also comes amid the dynamic price of the AAVE token, which is currently trading at about $275.03. In the last 4 hours, it has slightly increased by 0.11%, but in the last 24 hours, it has actually decreased by 2.23%.

Daily trading volume was recorded at $49.22 million, with a market cap of $4.21 billion and open interest reaching $466.59 million. These figures show that despite short-term fluctuations, investor interest in AAVE remains quite strong, especially with news of a partnership that could be a new catalyst.

However, what makes this story even more interesting is Aave’s position as more than just a lending protocol, but also part of a broader ecosystem that is beginning to connect DeFi with traditional assets.