Aave, a decentralized finance (DeFi) protocol boasting $70 billion in net deposits, has officially launched on Aptos, a layer-1 blockchain established by former Meta employees. This development may enhance liquidity for stablecoins and liquid staking tokens on the blockchain, both asset classes facing upcoming regulatory scrutiny in 2025.
An announcement shared with Cointelegraph states that Aave will support four native coins at launch: stablecoins USDC (USDC) and USDt (USDT), Aptos (APT), and Ethena Staked USDe (sUSDe). The Aptos Foundation will offer users rewards and liquidity incentives to encourage the Aave platform’s use on the Aptos blockchain.
The introduction of Aave could significantly boost stablecoin liquidity on the blockchain, as fiat-pegged cryptocurrencies are gaining traction and are a hot topic in the industry. On Aptos, the stablecoin market cap has soared in 2025, rising from $627.8 million on January 1 to $1.27 billion as of Thursday.
This launch allows Aave to tap into “new collateral markets” such as liquid staking tokens (LSTs), which are issued to users staking assets to bolster network security. These tokens can facilitate DeFi activities like lending and trading.
“By expanding to Aptos, Aave enhances access to lending, borrowing, and savings for a rapidly growing community,” stated a spokesperson from Aave to Cointelegraph.
Currently, Aptos has a total value locked of $857 million, according to DefiLlama. Aave enters a landscape with minimal competition among DeFi protocols. Of the top five protocols listed by DefiLlama, only one exceeds $1 billion in total value locked: PancakeSwap at $2.1 billion.
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Regulators, indexes weigh DeFi moves
The decentralized finance sector has flourished in recent years, providing users with access to traditional financial services without intermediaries. In DeFi, individuals can participate in various activities like lending, market making, investing, and trading.
This sector has also garnered the attention of indexes and regulators recently. On Saturday, S&P Dow Jones Indices disclosed plans to consider licensing and listing tokenized versions of their well-known benchmarks on DeFi protocols and exchanges.
Last weekend, the US Treasury invited input on introducing digital ID verification within DeFi, a measure the entity claims will combat crypto-related crime. However, on Wednesday, Federal Reserve Governor Christopher Waller reassured policymakers and banking stakeholders that there is no cause for concern regarding DeFi.
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