Introduction of real-world asset lending, Swiss bank SEBA applies for whitelist, AAVE surges over 70% at one point

The lending platform Aave has announced a partnership with the crypto firm Centrifuge to tokenize real-world assets as collateral, with the native token Centrifuge CFG serving as an additional reward. In addition, Swiss SEBA Bank has submitted a governance proposal application for whitelisting, planning to channel institutional user liquidity into Aave.

Centrifuge

Centrifuge achieves asset tokenization through its open-source DeFi platform Tinlake, tokenizing various corporate assets including real estate, non-convertible corporate bonds, trade receivables, fintech debt financing, and more.

There are currently 11 Real World Assets (RWA) markets with APY ranging from 3% to 10%, fluctuating based on market liquidity and asset categories. AAVE holders can also increase exposure to different markets through governance proposals.

Centrifuge also issues 9,250 native tokens CFG daily as additional incentives, similar to liquidity mining for real-world assets.

Aave founder Stani Kulechov stated in an announcement:

The RWA market is not only an area that protocols like Aave urgently need to expand into, but also an important part of the overall DeFi ecosystem. Eliminating barriers to use DeFi for everyone is Aave's vision, and we are excited to achieve this goal through Centrifuge's collateralization of real-world assets.

Swiss SEBA Bank Proposal

On 12/21, Swiss SEBA Bank submitted a governance proposal to Aave, applying to become a whitelister on Aave's institutional lending platform "Aave Arc" and planning to introduce institutional user liquidity to Aave.

Note: Aave's institutional lending platform was originally named "Aave Pro" and was renamed to "Aave Arc" in late July.

SEBA is a Swiss-regulated bank that integrates digital and traditional assets to provide services to professional institutional clients. Initially offering cryptocurrency and custody services, SEBA's users have shown great interest in DeFi returns.

However, due to regulatory constraints, SEBA's institutional clients have been unable to deploy liquidity on Aave on a large scale until the launch of "Aave Arc," providing SEBA users with the opportunity to access DeFi returns while meeting regulatory requirements.

Aave will conduct necessary due diligence on Aave Arc participants. The proposal is currently in the discussion stage, but SEBA believes the bank's situation is ideal, providing users with a flexible and fully regulated platform while injecting significant liquidity into Aave Arc.

The governance token AAVE surged 75% after 21 days, approaching $300, before retreating to $256.9 at the time of writing.