Aave Proposes V4 Deployment on Circle's Arc Blockchain

Aave Labs has proposed deploying its next-generation lending protocol, V4, on Circle's Arc blockchain as part of its expansion plans into institutional DeFi.

The proposal, published on Aave's governance portal on May 29, seeks to deploy V4 on Arc ahead of the network's mainnet launch in summer 2026. The deployment would integrate Aave's lending infrastructure directly into Circle's institutional pipeline, allowing for access to the capital Circle is courting.

Arc is a public layer-1 blockchain designed by Circle as an economic operating system for the internet. It uses USDC for transaction fees and is built specifically for stablecoin liquidity and tokenized real-world assets. The network has processed over 150 million transactions from 1.5 million wallets, per Circle.

The integration of V4 on Arc would bring significant benefits to Aave, including access to institutional capital and a more efficient lending infrastructure. Aave's Horizon platform, which lets institutions borrow stablecoins against tokenized assets like US Treasuries, has already seen $580 million in net deposits by December 2025.