Aave Labs has put forward a direct-to-AIP governance proposal to add USAT, also called Tether America USD, to the Aave V4 Core Instance on Avalanche. The post frames the move as a way to expand the protocol’s stablecoin lineup with a dollar token described as operating under a U.S. federal framework.

According to the proposal, USAT is issued by Anchorage Digital Bank, N.A., a federally chartered national trust bank supervised by the Office of the Comptroller of the Currency. The token is described as redeemable one-to-one for U.S. dollars, but the final market setup for Aave has not yet been published.

What the proposal would do

The governance post seeks approval to onboard USAT to Aave’s V4 core market on Avalanche through the protocol’s direct-to-AIP route. The proposal identifies the token contract for USAT on Avalanche as 0x9A5926fd88F747c357738b1e82aFB46AB80f0A6b.

At this stage, the listing request is limited to adding the asset to the specified Aave deployment. The post says that the risk parameters and final configuration for the listing will be supplied later by Aave’s Risk Service Providers, and that the proposal will be updated once those details are available.

Why Aave Labs says it wants USAT added

In its rationale, Aave Labs says the listing would bring a stablecoin issued by a federally supervised U.S. bank onto the Aave V4 Core Instance on Avalanche. The proposal also says the addition could support demand from institutional participants looking for a stablecoin issued under the United States’ federal stablecoin framework.

Aave Labs further argues that onboarding USAT would broaden the range of regulated dollar-denominated assets available across Aave deployments. The post specifically states that USAT is subject to the GENIUS Act, though it does not add further detail in the proposal itself.

Issuer details and disclosure

The proposal describes Anchorage Digital Bank, N.A. as the issuer of USAT. It characterizes the bank as a federally chartered national trust bank under OCC supervision and says the token can be redeemed at a one-to-one ratio for U.S. dollars.

Aave Labs also included a disclaimer about its role in the submission. It said the proposal was prepared in its capacity as a contributor to the Aave ecosystem and that it has no direct financial relationship with Anchorage Digital Bank, Tether, or their affiliates, and has not received compensation from those parties in connection with the proposal.

What happens next

The next confirmed step is a period for community discussion and feedback from service providers. After that, Aave’s Risk Service Providers are expected to deliver the final configuration for the Avalanche V4 core market listing.

Only once those parameters are incorporated would the process move to an AIP vote for final confirmation and onchain enforcement. Until that vote is published and approved, the USAT onboarding remains a proposal rather than an active market listing on Aave.

Source: governance.aave.com