DeFi’s institutional adoption reaches a watershed moment as Aave’s deposit volume competes with traditional banking giants. The protocol’s growth signals accelerating convergence between decentralized and mainstream finance.
Aave has surpassed $50 billion in net deposits, nearly doubling the TVL of its closest DeFi competitor Lido. Federal Reserve data shows this volume would rank 47th among US commercial banks, exceeding Deutsche Bank and Barclays while approaching 10% of Goldman Sachs’ deposits.
The protocol’s growth stems from increasing TradFi adoption, with the Ethereum Foundation borrowing $2 million in GHO stablecoins and Trump-linked World Liberty Financial preparing an Aave V3 deployment. Aave’s TVL now nears Circle’s $62 billion USDC reserves as institutional demand grows.
Aave Labs Director Seb Pulido projects $1 trillion in deposits through RWA tokenization and stablecoin integration. The team’s Horizon initiative specifically targets institutional-grade real-world asset collateralization to drive further adoption.
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CryptoFeedHub Note: This article is a rewritten summary based on external reporting. Original source: CryptoSlate