Aave, a decentralized finance (DeFi) protocol with $70 billion in net deposits, has launched on Aptos, a layer-1 blockchain founded by former Meta employees. The move may deepen stablecoin and liquid staking token liquidity on the blockchain, two asset classes subject to regulation in 2025.
According to an announcement shared with Cointelegraph, Aave will support four coins native to the blockchain at launch: stablecoins USDC (USDC) and USDt (USDT), Aptos (APT), and Ethena Staked USDe (sUSDe). The Aptos Foundation will provide users with rewards and liquidity incentives to promote the use of Aave on the Aptos blockchain.
The arrival of Aave could deepen stablecoin liquidity on the blockchain, as the fiat-pegged cryptocurrencies are experiencing a breakthrough and are one of the industry’s most-discussed use cases. On Aptos, the stablecoin market cap has surged in 2025, jumping to $1.27 billion on Thursday from $627.8 million on Jan. 1.
The launch comes as Aave positions itself to take advantage of “new collateral markets,” such as liquid staking tokens (LSTs). LSTs are a type of token given to users who stake assets, contributing to network security. These tokens can be used for DeFi activities such as lending or trading.
“By expanding to Aptos, Aave increases access to lending, borrowing, and savings to a new, fast-growing community,” an Aave spokesperson told Cointelegraph.
Currently, Aptos has a total value locked of $857 million, according to DefiLlama. Aave enters an ecosystem with few DeFi protocol competitors. Of the top five protocols listed by DefiLlama, only one has a total value locked of over $1 billion: PancakeSwap at $2.1 billion.
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Regulators, indexes weigh DeFi moves
Decentralized finance is a sector of crypto that has blossomed in recent years, driven by the utility of accessing mainstream financial services without intermediaries. In DeFi, users can engage in many activities, including lending, market making, investing and trading.
It has also caught the attention of indexes and regulators recently. On Saturday, it was revealed that the S&P Dow Jones Indices is considering licensing and listing tokenized versions of its popular benchmarks on DeFi protocols and exchanges.
Last weekend, the US Treasury issued a notice soliciting input on the potential addition of digital ID verification for DeFi, a tool the entity says would be used to fight crypto crime. However, on Wednesday, Federal Reserve Governor Christopher Waller told policymakers and banking stakeholders that there is nothing to fear from DeFi.
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