Standard Chartered Bullish on Aave Amid Tokenized Asset Growth
Standard Chartered sees Aave as a key beneficiary as tokenized assets enter DeFi. The protocol could regain dominance in onchain lending, recovering from a recent cybertheft and market downturn. The bank forecasts significant upside for digital asset prices into year-end.
Quick Take
Standard Chartered forecasts Aave to benefit from tokenized asset growth.
Aave's deposit base ranked alongside 30th-largest US bank by deposits.
$292M KelpDAO incident and price decline weighed on Aave, but negatives expected to fade.
DeFi assets projected to reach $2.7T by 2030, driving Aave's recovery.
Market Impact Analysis
BullishStandard Chartered's bullish research highlights Aave's potential to capture growth from tokenized real-world assets, which could drive demand for AAVE token.
Speculation Analysis
Key Takeaways
- Standard Chartered forecasts Aave to capture growth as tokenized assets enter DeFi.
- Aave’s deposit base hit $75 billion in October 2025, rivaling the 30th-largest US bank.
- The $292 million KelpDAO cybertheft and market downturn weighed on Aave, but headwinds are fading.
- DeFi assets could reach $2.7 trillion by 2030, fueling Aave’s lending recovery.
What Happened
Standard Chartered’s digital assets research team has placed a bullish bet on Aave, calling the lending protocol a primary beneficiary as tokenized real-world assets migrate onchain. In a Wednesday note, Geoff Kendrick, the bank’s global head of digital assets research, said Aave could rebuild its position as the dominant DeFi lending venue. The endorsement marks an expansion of Standard Chartered’s tokenization thesis—from trading hubs like Uniswap to credit markets. The bank’s forecast also ties to a broader outlook: significant upside for digital asset prices into year-end, which would lift Aave’s collateral base. Despite recent setbacks, the bank sees Aave’s deposit engine roaring back as institutions embrace tokenized collateral.
The Numbers
Aave’s deposit base swelled to $75 billion in October 2025, placing it on par with the 30th-largest US bank by deposits. However, the protocol took a hit after April’s $292 million cybertheft involving KelpDAO, which triggered asset outflows and eroded market share. Aave’s market share in DeFi lending slipped following the incident, but Standard Chartered expects those losses to reverse as the protocol’s deposit engine restarts. Standard Chartered projects DeFi’s total asset pool will balloon to $2.7 trillion by 2030, with lending protocols like Aave capturing significant inflows.
Why It Happened
The bullish call is rooted in the expected deluge of tokenized traditional assets—bonds, real estate, private credit—entering DeFi. Standard Chartered believes these instruments will serve as pristine collateral, drawing borrowers and lenders to Aave’s liquid markets. The bank also thinks negative forces are reversing: the KelpDAO incident is fading in relevance, and broader digital asset prices are poised for a year-end rally. By connecting its earlier Uniswap thesis to Aave, Standard Chartered signals that DeFi’s core infrastructure is ready for institutional prime time.
Broader Impact
The note could catalyze institutional flows into Aave’s ecosystem, boosting the AAVE token and legitimizing onchain lending. It sets a precedent for major banks to cover DeFi protocols as serious financial infrastructure. As tokenized RWAs swell, Aave may evolve from a crypto-native lender into a cornerstone of the new credit stack.
What to Watch Next
- Aave’s total value locked recovery as tokenized assets go live.
- Other major banks issuing similar research on DeFi protocols.
- Regulatory clarity on tokenized real-world assets, which could accelerate adoption.
This article is for informational purposes only and does not constitute financial advice.
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