San Francisco–based Stable Finance has been acquired by Aave Labs, the team behind the Aave lending ecosystem, as part of Aave’s push to expand into consumer-facing on-chain financial services. Founded in 2023, Stable Finance’s mobile app enables users to deposit funds from bank accounts, cards, or crypto wallets to earn yield on stablecoins via overcollateralized decentralized markets. The acquisition, announced Thursday, also brings Stable Finance’s founder Mario Baxter Cabrera and his engineering team into Aave Labs. Financial details were not disclosed.
This move underscores Aave’s strategy to balance retail offerings with its growing institutional presence. Recent initiatives include an integration with Maple Finance’s yield-bearing stablecoins and the launch of Horizon, an institutional marketplace for tokenized assets. Stani Kulechov, founder of Aave Labs, said the acquisition “reinforces our commitment to turning onchain finance into everyday finance.”
Since its launch in January 2020, Aave has amassed over $37.25 billion in total value locked (TVL), highlighting its significant role in the DeFi space.
Aave is not alone in offering users yield generated through stablecoin lending. Coinbase integrated the DeFi lending protocol Morpho in September, enabling users to lend USDC and earn yields up to 10.8%, more than doubling Coinbase’s standard USDC rewards. Crypto.com also partnered with Morpho to bring stablecoin lending to its Cronos blockchain.
While regulations like the GENIUS Act (July 2025) prohibit yield-bearing stablecoins, DeFi lending protocols operate in a regulatory gap, sparking controversy with traditional banks concerned about deposit outflows. However, many in crypto see these developments as innovations that challenge existing financial intermediaries. Coinbase notably highlighted that institutions warning of “systemic risk” benefit from card processing fees circumvented by stablecoins.
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