Coinbase Tokenized Stocks Go Live on Aave V4

Coinbase has expanded its tokenized stocks to Aave V4 on Base, making seven products live as collateral. The move brings a new use case for Coinbase's recently launched tokenized equities, allowing users to borrow against their positions while maintaining exposure to companies like Apple, Nvidia, and Microsoft.

The tokens are issued by Coinbase Onchain SPV Ltd., with the underlying shares held in segregated custody accounts by Alpaca Securities LLC. This structure gives token holders direct exposure to actual equities rather than a synthetic instrument tracking prices.

Aave's setup is relatively simple, with a single $USDC reserve and risk parameters for each stock. However, there are some limitations due to the mismatch between crypto markets and traditional trading hours. Users can continue to borrow or repay during weekends and US market holidays, but the value of the stock collateral does not move until fresh pricing becomes available.