Aave reports $27.4B TVL growth and announces Avalanche RWA Hub

Aave has reported a significant increase in its total value locked (TVL), which rose 13.7% in August to reach $27.4 billion. During the same period, active loans climbed to $11.7 billion, representing 47.8% of the tracked on-chain lending market. Ethereum remains the protocol's primary capital base, accounting for approximately 83.5% of the average August TVL.

Expanding its institutional capabilities, Aave announced plans for a Real World Asset (RWA) Hub on the Avalanche network. This credit market will allow institutions to use tokenized financial assets as collateral to borrow USDT, a dollar-backed stablecoin supported by Tether. The initiative aims to move tokenized assets into active credit markets, potentially including tokenized U.S. Treasuries, real estate, and corporate bonds, subject to governance and risk reviews.