Banking without Banks? $30B onchain platform goes after consumers and SMEs

Contrary to popular narrative, stablecoins are not a threat to banks’ large corporate transaction-banking businesses. Tokenized bank deposits from JPMorgan, Citi, HSBC and DBS already offer 24/7 programmable and multi-FX money movement to the largest corporates in the world. And more products with better connectivities are in the works from banks.

But disruption to banking due to stablecoins and onchain finance is happening. And it is happening already in consumer banking, SME banking, and wealth management, where solutions immediacy matter and switching costs are low.

This week, Aave, the $30B AUM onchain money market platform built entirely on blockchain and smart contract, delivered what might be the most important consumers and SME savings product from the onchain world yet. It released the Aave App, a product that strikes at the core of the 3.6 trillion dollar global retail banking and wealth management industry.

The new Aave App is a neobank style savings interface built entirely onchain. It packages Aave’s onchain lending yield infrastructure into a mobile-first fintech experience that everyday non-crypto users are familiar with.

In this Weekly Research note, we explore how onchain financial apps like Aave are beginning to disrupt retail and SME banking, how Aave generates yield, and why the Aave App marks a turning point.

What Aave Does

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