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Aave Labs plans to build a dedicated lending market for tokenized real-world assets on Avalanche, The Defiant reported. According to the report, USA₮, a dollar stablecoin issued by Anchorage Digital Bank, will be used as collateral. Institutions will be able to borrow USA₮ by pledging tokenized real-world assets as collateral without selling them. Aave said the goal is to create an environment where asset tokens can be used as on-chain collateral through the dedicated lending market.