Aave Brings Tokenized Stocks onto DeFi with New Equities Hub Feature
Aave V4 on Base has expanded its lending capabilities by allowing users to collateralize Coinbase-issued tokenized stocks for USDC loans. The feature, called Equities Hub, enables non-U.S. users in permitted jurisdictions to deposit the tokenized stocks and borrow USDC against them.
The seven U.S. equities available as collateral include Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. According to Aave, the market launches with an initial collateral cap of roughly $29 million across the seven stocks, a $32 million USDC supply cap, and a $21 million USDC borrow cap.
Aave's founder and CEO, Stani Kulechov, stated that public equities are one of the largest pools of capital in the world, and tokenization is bringing that capital onchain. He added that until now, tokenized stocks were something users could hold or trade; today they become something you can borrow against.
The Equities Hub uses Aave's Hub and Spoke architecture to pool equity collateral into a single market with one USDC reserve. Risk parameters are set separately for each asset, while issues affecting one equity are isolated from the others.