Aave Gets Citi’s Backing on Tokenized Collateral

Citi analysts Peter Christiansen and Aditi Balachandran published an Oct. 19, 2026, research note arguing that Aave is becoming a venue for using tokenized assets as collateral in capital markets, not merely a crypto lending platform; Aave promoted the report on X. The note projected tokenization would expand beyond stablecoins into money market funds, private credit, government bonds and equities, making it more important to finance those assets and use them as collateral. Aave’s Horizon market, launched in August 2025, lets approved users pledge tokenized fund tokens to borrow stablecoins. TokenLogic reported Horizon’s GHO debt rose from 23.2 million to 39.0 million in the 30 days to September 14, largely through looped positions.