Citi research says Aave could be viewed beyond crypto-native lending as a decentralized collateral liquidity protocol linking tokenized assets with financing, according to a BlockBeats report.
Protocol positioning
The report said Aave V4, Horizon and GHO point to the intersection of collateral, liquidity and borrowing. It described potential uses for tokenized assets in financing, leverage, collateral and capital markets, while attributing the view to Citi research.
Tokenized collateral
BlockBeats said tokenization could extend from stablecoins to money-market funds, private credit and Treasuries, with equities a possible future addition. It described collateral circulation as a potential major use case for tokenized assets.
Source: BlockBeats flash.