Aave Labs has submitted a governance proposal to onboard Open USD (OUSD) to both Aave V3 Core on Ethereum and the upcoming Aave V4 Core Hub. OUSD is backed by cash and short-term US Treasuries and governed by a consortium of over 200 companies including Visa, Mastercard, Stripe, BlackRock, BNY, Coinbase, and Aave itself. At launch it would be supply and borrow eligible only, with collateral use deferred pending liquidity and price history development.
For Armada's crypto repo desk, OUSD's institutional backing distinguishes it from most fiat stablecoins and could accelerate adoption as DeFi collateral. If OUSD achieves Aave collateral status, it may become a relevant benchmark for assessing stablecoin collateral in Armada's crypto repo framework. Track governance outcome and onchain liquidity metrics to assess future eligibility.