Aave V4 Enables Borrowing Using Tokenized US Stocks
Aave V4 has introduced a new feature that allows users to borrow USDC using tokenized US stocks as collateral. This feature is available on Base, an Ethereum L2 network, through a dedicated market called Equities Hub.
Equities Hub currently supports seven stock tokens: Apple (AAPLc), Amazon (AMZNc), Alphabet (GOOGLc), Meta (METAc), Microsoft (MSFTc), NVIDIA (NVDAc), and Tesla (TSLAc). These stocks are tokenized by Coinbase Global's subsidiary, Coinbase Onchain SPV.
The loan process works as follows: users deposit their stock tokens into Equities Hub, which then calculates a unique collateral ratio for each asset. The user can then borrow USDC against the deposited tokens.
Aave Labs has stated that it plans to expand the number of supported assets in Equities Hub, including adding more tokenized stocks from Coinbase and potentially GHO, a dollar-pegged stablecoin native to the Aave protocol.