Aave V4 Launch Expands Avalanche’s Onchain Credit Activity

Aave V4 launched on Avalanche on July 15, adding new lending markets to a network that is also hosting tokenized credit products from Galaxy.

The deployment supports WAVAX, sAVAX, BTC.b, USDC, USDT, WETH.e and EURC through Aave’s liquidity hub and spoke architecture. Aave’s Avalanche deployment recorded deposit growth from approximately $20 million to $30 million during September 2026.

Aave’s earlier V2 and V3 deployments on Avalanche processed more than $15 billion in cumulative inflows. That figure covers activity across the two previous versions and does not represent deposits currently held in V4.

Avalanche’s onchain credit activity also includes Galaxy CLO 2025-1, a tokenized collateralized loan obligation with an initial closing of $75 million on Jan. 15, 2026. The structure supports Galaxy’s lending activities and was issued on Avalanche.

Grove provided approximately $50 million as an anchor allocation and purchased the CLO’s Class B notes. The transaction brought a familiar securitization structure onto a public blockchain while retaining institutional debt classes.

The developments place lending markets and tokenized credit instruments alongside other financial products on Avalanche. Aave provides markets where users supply digital assets and borrow against supported collateral, while a CLO packages loans into securities with different levels of risk and payment priority.

The two products measure different activity. Aave deposits reflect funds supplied to lending markets, while Galaxy’s CLO represents a tokenized credit instrument issued through a structured-finance transaction.