Aave V4 Supports Tokenized US Stocks as Collateral for USDC Loans, 7 Stock Tokens Launched

Aave V4 has launched the Equities Hub on Base, allowing non-U.S. users to use seven tokenized U.S. stocks issued by Coinbase as collateral to borrow USDC. The stocks include Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. This marks the first time tokenized stocks are used as collateral in the Aave lending market. The market employs the Aave Hub and Spoke architecture, integrating the seven stock collateral into a single USDC liquidity pool, with independent risk parameters set for each stock and isolating risks that may arise from individual stocks. Chainlink will provide on-chain price data for these tokenized stocks. The initial total collateral cap for the market is approximately $29 million, with a USDC supply cap of $32 million and a borrowing cap of $21 million, while the collateralization rates for the different stocks range from 65% to 79%. Currently, the seven stocks can only be used as collateral, and Aave has indicated that more Coinbase tokenized stocks may be added in the future after governance and risk assessments are approved, along with the inclusion of GHO as a borrowable asset.