Aave V4 Expands to Avalanche with Tokenized Asset Lending

Aave has taken its lending protocol beyond Ethereum for the first time with the launch of Aave V4 on Avalanche. The move extends the platform's infrastructure to a network used for decentralized finance, tokenization, and institutional blockchain applications.

The launch builds on an earlier presence on Avalanche, where Aave V3 handled billions of dollars in liquidity. Aave said the V4 deployment will support specialized borrowing markets backed by tokenized assets.

Avalanche's RWA growth added context to Aave's decision to choose Avalanche for its first V4 expansion beyond Ethereum. The platform can support tokenized US Treasuries, money market funds, private credit, and corporate bonds.

Founder Stani Kulechov said Avalanche was selected because of its existing Aave market and growing tokenization activity. He said, 'Aave V4 was designed to enable new credit markets at internet scale.'