Aave Eyes RWAs and Institutional Finance for Its Next Phase

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Kulechov emphasized that Aave must evolve beyond its current DeFi lending model to pursue opportunities in real-world assets (RWAs), institutional lending, and consumer-facing financial products. He described RWAs as a massive opportunity, estimating the total addressable market at roughly $500 trillion based on the value of global financial assets.

The strategy signals a shift toward positioning Aave as a bridge between traditional finance and onchain infrastructure. With Aave already ranking among the largest DeFi protocols by total value locked, the move could reshape how the protocol competes as institutions increasingly explore tokenization and blockchain-based financial rails.

[kevin1]

rwas always sound like buzzwords until you remember how big tradfi actually is