Aave Labs has expanded its footprint in consumer DeFi by acquiring Stable Finance, a San Francisco-based company that allows users to earn yield on stablecoins through its mobile app.

Founded in 2023, the Stable Finance app enables deposits from various sources such as bank accounts and crypto wallets. The acquisition, announced on Thursday, includes Mario Baxter Cabrera and his engineering team joining Aave Labs, although financial details were not disclosed.

This acquisition reflects Aave’s strategy to enhance retail offerings alongside its initiatives in institutional markets, following recent integrations like Maple Finance’s yield-bearing stablecoins and the launch of Horizon, Aave’s marketplace for tokenized assets.

Stani Kulechov, founder of Aave Labs, stated that this move “reinforces our commitment to turning onchain finance into everyday finance.”

As of now, Aave boasts over $37.25 billion in total value locked (TVL), as reported by DefiLlama. This showcases the platform’s substantial role in the decentralized finance ecosystem.

Related Initiatives

Aave isn’t the only player in the yield-generating stablecoin space. In September, Coinbase introduced integration with the Morpho protocol, allowing users to lend USDC for a higher yield. Similarly, a partnership between Crypto.com and Morpho aims to expand stablecoin lending across its platform.

However, the recent GENIUS Act, which prohibits yield-bearing stablecoins, has stirred controversy, with some traditional banks claiming that such regulations allow unfair competition that could significantly impact the banking sector.

In response, voices within the crypto community, including Coinbase, argue against the notion of risks perpetuated by traditional institutions, suggesting that they benefit excessively from existing financial structures.