Coinbase Tokenized Stocks Fuel DeFi Lending with Aave Partnership
Coinbase's tokenized stocks can now be used as collateral for USDC loans on Aave V4, marking a significant step in the adoption of decentralized finance (DeFi) and the integration of traditional assets into blockchain-based lending protocols.
The seven U.S. equities available for tokenization are Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla, all of which can be used to obtain USDC loans on Aave V4's Equities Hub.
Aave Labs founder and CEO Stani Kulechov noted that public equities represent one of the largest pools of capital in the world, and tokenization is bringing this capital onto the blockchain.
The initial market capacity is limited to $29 million in collateral value, with a USDC supply cap of approximately $32 million and a borrow cap of $21 million. Collateral factors range from 65% to 79%, depending on the stock.