Stani Kulechov, founder of Aave Labs, expects tokenized real-world assets to hit $100 billion by December – doubling today's total. He also confirmed the next major protocol upgrade, Aave V4, will launch on Avalanche first, and argued the design could undercut traditional prime brokers.
In an interview with The Block, Kulechov framed the RWA surge as a natural evolution. "Institutional demand has shifted from exploratory to committed," he said. The $100 billion target, he called "conservative" given the deal flow he sees from banks and asset managers. Tokenized Treasuries already top $1 billion, and he expects private credit and invoice financing to drive the next leg.
On Aave V4, the modular lending-pool architecture is set to debut on Avalanche, chosen for its subnet scalability and low transaction costs. Kulechov said the upgrade allows lenders to set custom risk parameters per pool – a feature he believes can mimic the flexibility of prime broker credit lines. "Prime brokers charge high fees on T+2 settlement. On-chain, you get real-time execution and programmable collateral," he said.
He acknowledged that full disruption of prime brokerage will require clearer regulatory frameworks, but pointed to growing bank interest in tokenized credit as evidence of momentum. "The infrastructure is ready. The question is how fast the regulatory side moves."
AAVE, the protocol's native token, traded near $180 at the time of the remarks, up 4% on the day. Market participants appear to view the Avalanche deployment as a near-term catalyst, though no specific launch date was given. Kulechov hinted at a testnet release within months.
For traders, the concrete watch item is V4's actual testnet and mainnet rollout. The RWA growth rate is another key indicator: if institutional inflows accelerate, Aave's lending pools could see a significant liquidity boost. Execution risk and regulatory headwinds remain factors, but Kulechov's timeline sets a clear benchmark for the second half of 2026.
Aave V4 heads to Avalanche as tokenized assets target $100B by December
Aave Labs founder Stani Kulechov discusses the launch of Aave V4 on Avalanche and predicts real-world assets (RWAs) will double to $100 billion by year-end, indicating growth in decentralized finance.