AAVE is trading around $146 following Aave's expansion of its V4 lending market on Base with Coinbase tokenized stocks. Seven U.S. technology stock tokens are now available as collateral for USDC loans to eligible users outside the United States.
Equities Hub Launch
Aave announced that AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc are now available through its Equities Hub. Users can deposit these assets as collateral and borrow USDC while maintaining exposure to the underlying companies.
The market is built on Aave V4 on Base, with Chainlink providing pricing data for the tokenized equities. LlamaRisk completed the risk assessment, and Aave Labs deployed the V4 instance on behalf of Aave DAO.
Following the announcement, AAVE jumped over 7%, trading at $146.65 as of press time. The token is up 13% over the last 7 days and 25% over the last 30 days.
Structure and Mechanics
Coinbase Onchain SPV Ltd. issues the tokens, while Alpaca Securities holds the underlying shares in segregated custody accounts. This structure gives token holders economic exposure to real equities rather than instruments that only track their prices.
Cash dividends are reinvested in underlying shares after fees and withholding taxes apply. An onchain multiplier accounts for corporate actions such as stock splits, which alter the underlying claim of each token.
At launch, the Equities Hub contains one USDC reserve, with all seven tokenized stocks available as collateral. However, users cannot borrow the equity tokens or use one tokenized stock to borrow another equity token. Each collateral asset is subject to individual risk factors depending on asset characteristics and market conditions.
Around-the-Clock Operations and Pricing
Aave remains available 24/7, although Chainlink's tokenized equity feeds publish prices on a 24/5 schedule. Pricing changes occur from Sunday evening to Friday evening, excluding U.S. market holidays.
During times when prices do not update, users can still borrow, repay, supply, and withdraw, but collateral prices remain unchanged. Reserves can be temporarily suspended to implement corporate actions before updated token multipliers are applied.
Future Plans
Aave is looking to add additional Coinbase tokenized stocks, and GHO may eventually be integrated into lendable assets alongside USDC. Any expansion will be subject to Aave governance procedures and additional risk assessments before activation.
The Base launch furthers Aave V4's specialization in tokenized assets and real-world financial products. In July, Aave V4 expanded to Avalanche, targeting dedicated credit markets for tokenized real-world assets and institutional finance.
