AAVE is now on RWA, traditional private credit can also serve as DeFi collateral, this bridge is quite interesting.

Crypto World News reports that, according to The Block, the security token mGLOBAL launched by Midas has integrated with AAVE Horizon, allowing users to collateralize mGLOBAL to borrow USDC while maintaining exposure to the underlying assets.
mGLOBAL tracks a globally diversified alternative debt short-term private credit portfolio managed by Fasanara Capital. The token is issued by a bankruptcy-remote entity under a Luxembourg asset securitization vehicle, with net asset value calculated monthly by JTC Luxembourg.