Citi Research has named Aave a potential leader in lending for tokenized assets, pointing to collateral mobility as a key benefit of tokenization. The AAVE token trades at $148, down 7.4% over the past week and 77% from its May 2021 peak of $662. Aave Horizon, launched on August 26, 2025 on Ethereum, lets institutions and qualified users borrow stablecoins against tokenized funds holding U.S. Treasury bills and CLOs, and Aave earns a share of borrower interest. However, the AAVE token is not used as the settlement asset or collateral in Horizon, and holders benefit mainly through a buyback program funded by protocol revenue. Meanwhile, banks such as Citi, JPMorgan Chase and the DTCC are building permissioned collateral networks of their own.
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Related tickers and likely impact
AAVE/USDT
▲ Likely positiveAave
Relevance: medium
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | DeFi |
| Market cap | $2.4B |
| Close on 10/19/2026 | 149.52 |
| Change that session | -1.64% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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