Aave, a decentralized finance (DeFi) protocol boasting $70 billion in net deposits, has debuted on Aptos, a layer-1 blockchain established by former Meta employees. This expansion may enhance liquidity for stablecoins and liquid staking tokens on the blockchain, both of which are anticipated to face regulation in 2025.
As announced to Cointelegraph, Aave will launch supporting four native coins on the blockchain: stablecoins USDC (USDC) and USDt (USDT), Aptos (APT), and Ethena Staked USDe (sUSDe). The Aptos Foundation plans to offer rewards and liquidity incentives to encourage the adoption of Aave on its blockchain.
Aave’s entry could strengthen stablecoin liquidity on Aptos, where fiat-pegged cryptocurrencies are gaining traction and becoming a key topic of discussion in the industry. The stablecoin market cap on Aptos has soared in 2025, rocketing to $1.27 billion as of Thursday, up from $627.8 million on January 1.
Stablecoin market cap on Aptos. Source: DefiLlama
This launch positions Aave to capitalize on “new collateral markets,” particularly liquid staking tokens (LSTs). These tokens are awarded to users who stake assets to bolster network security and can be utilized in various DeFi activities like lending or trading.
“By expanding to Aptos, Aave enhances access to lending, borrowing, and savings for a burgeoning community,” shared an Aave spokesperson with Cointelegraph.
Currently, Aptos has $857 million in total value locked, as reported by DefiLlama. Aave is entering a landscape with minimal DeFi protocol competition; of the top five protocols listed by DefiLlama, only PancakeSwap has a total value locked exceeding $1 billion, standing at $2.1 billion.
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Regulators, indexes weigh DeFi moves
Decentralized finance has flourished in recent years, enabling access to conventional financial services without intermediaries. In DeFi, users engage in activities like lending, market making, investing, and trading.
This sector has increasingly drawn attention from indexes and regulators. Recently, it was disclosed that the S&P Dow Jones Indices is contemplating licensing and listing tokenized versions of its popular benchmarks on DeFi protocols and exchanges.
Last weekend, the US Treasury issued a notice inviting public feedback on the possible introduction of digital ID verification for DeFi, claiming it would help combat crypto-related crimes. However, on Wednesday, Federal Reserve Governor Christopher Waller reassured policymakers and banking stakeholders that DeFi poses no cause for concern.
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