Aave Unveils Avalanche RWA Hub with Tether's USA₮

Aave has announced plans to create an Avalanche RWA (Risk-Weighted Asset) hub, allowing institutions to borrow USA₮ against tokenized assets. The hub will use Aave V4's Hub & Spoke model, which separates risk while sharing liquidity. This setup gives administrators the flexibility to apply collateral terms and borrowing limits tailored to specific financial products.

The USA₮ stablecoin, issued by Anchorage Digital Bank with support from Tether, will serve as the inaugural borrowing asset. Aave's founder, Stani Kulechov, said the RWA Hub 'moves tokenized assets beyond issuance and into credit markets, putting them to work as collateral.'

Avalanche already hosts over $3.4 billion in tokenized assets, and its users include asset managers and financial companies. The total tokenized RWA market has climbed 40% since the start of 2026, reaching above $51 billion.