Aave Becomes the First DeFi Protocol to Cross $1 Billion in Real-World Asset Deposits
Tokenized Treasuries, bonds, and private credit are pouring into DeFi as Aave's Horizon market doubles deposits in a single month.
DeFi just hit a milestone that would have seemed impossible two years ago: a decentralized lending protocol now holds over $1 billion in real-world assets.
Aave announced on February 19 that deposits of tokenized real-world assets on its Horizon market surpassed the $1 billion mark — making it the first decentralized lending protocol to reach that threshold. Even more impressive, deposits doubled in a single month, climbing from $600 million in January to $1 billion by mid-February.
What Is in the Vault
The real-world assets flowing into Aave include tokenized U.S. Treasury bills, private credit, bonds, and other yield-generating financial products. These instruments provide on-chain returns backed by traditional financial instruments — essentially bringing Wall Street yield into DeFi rails.
The Horizon initiative alone attracted over $550 million in RWA deposits, reflecting growing institutional confidence in decentralized infrastructure.
The Macro View
Aave's milestone is part of a much larger trend. The total value locked in tokenized U.S. Treasuries has risen from under $1 billion in April 2024 to more than $10 billion by February 2026 — a 10x increase in under two years.
By chain, Ethereum leads with approximately $1.7 billion in net RWA expansion, Arbitrum added $880 million, and Solana contributed $530 million with a 58.7% quarter-over-quarter growth rate.
The Business of DeFi
Aave is not just a protocol experiment — it is a revenue machine. The platform generates $8-10 million in monthly revenue, and total DAO revenue surged to $142 million in 2025, exceeding the sum of the prior three years combined.
Founder Stani Kulechov envisions tokenized energy and other productive real-world assets as the next frontier.
Bottom Line
This is DeFi growing up. The convergence of traditional finance and decentralized protocols is no longer theoretical — it is happening at scale, and Aave is leading the charge.