VanEck and Securitize have announced that their tokenised treasury fund VBILL is now eligible collateral on Aave Horizon, the institutional Real-World Assets (RWA) market built on the Aave protocol. The move bridges regulated asset-manager products with DeFi infrastructure, opening new pathways for institutional capital.
The integration of VBILL into Aave Horizon represents a significant milestone in the convergence of traditional finance and decentralised infrastructure. VBILL, which is backed by short-duration U.S. Treasury securities and issued via Securitize in partnership with asset manager VanEck, is now accepted as collateral on Aave Horizon — meaning eligible institutions holding VBILL tokens can borrow stablecoins against their holdings.
This transition transforms what was once static Treasury exposure into a dynamic, composable asset within DeFi. The collateral eligibility is underpinned by on-chain pricing feeds: chain-native oracles deliver net-asset-value (NAV) data to ensure accurate valuation and risk management within the protocol.
In operating terms, the protocol now treats VBILL tokens as a low-volatility collateral option — one that institutional investors understand, but now can leverage in a transparent, blockchain-native environment. For example: a treasury fund investor who previously held VBILL purely for cash-management purposes may now deposit the tokens in the Aave Horizon pool, borrow stablecoins, and deploy those proceeds elsewhere — while still retaining exposure to the underlying government-bond backing. This opens an array of capital-efficiency strategies.
Tokenised Treasuries meet DeFi: unlocking institutional liquidity
From a strategic vantage, this move sends a strong signal: DeFi is being embraced not just by crypto-native players, but by regulated asset-managers and financial intermediaries. It suggests the narrative around RWAs has matured — from concept to execution. With the total assets on Aave Horizon surpassing several hundred million dollars in a short time, the addition of VBILL enhances depth, credibility and institutional access. It also positions Aave Horizon to attract even more high-quality asset-tokenisation projects.
Nevertheless, challenges remain. Governance and risk parameters for RWAs must be robust: oracles must be reliable, token-issuers must maintain transparency, and interoperability between legal structures and on-chain protocols must hold. For VBILL holders, due diligence remains imperative: understanding custody, redemption rights, and the protocol’s liquidation risk is critical.
In summary: the VBILL integration into Aave Horizon is a landmark for tokenised finance, illustrating how Treasuries and DeFi can co-exist — and signalling that institutional DeFi is one step closer to being mainstream.
