Coinbase tokenized stocks have launched as collateral on Aave V4, deployed on the Base network. Seven tokenized US equities—AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc—are now available to back USDC loans on the protocol in eligible jurisdictions outside the United States.
The underlying shares are held with Alpaca Securities LLC, an SEC-registered broker-dealer, in segregated custody accounts. Coinbase serves as bare trustee for token holders, meaning they maintain real economic exposure to the equities rather than synthetic price references. The custodian cannot lend the shares or use them for its own purposes.
How the Lending Market Works
The Equities Hub operates on a single USDC reserve paired with a lending spoke that pools all collateral. Users can deposit any combination of the seven tokenized stocks and borrow USDC against them, with each token carrying its own collateral factor.
At launch, the tokenized stocks function as collateral only. Borrowing the stock tokens themselves or opening equity-against-equity positions is not yet enabled.
Pricing is supplied by Chainlink's 24/5 tokenized equity feeds, active from Sunday 8 PM ET through Friday 8 PM ET. During weekends and US market holidays, prices hold at the last published value, meaning collateral values remain fixed and a position's health factor can only decline through interest accrual.
Dividends and Corporate Actions
Dividends are reinvested to purchase additional shares rather than paid out directly, net of fees and withholding tax. Stock splits follow the same reinvestment mechanism. Both flow through a multiplier that begins at 1.0 and adjusts only when corporate actions occur, making the token a total return instrument that can drift above the raw share price.
During corporate actions affecting a reserve, the reserve pauses until the new multiplier applies.
Market Operations
The market operates 24/7, allowing users to supply, borrow, repay, and withdraw at any time, with the exception of pauses during corporate actions. Aave Labs deployed this V4 instance on behalf of Aave DAO, with LlamaRisk conducting the risk analysis.
Additional Coinbase tokenized stocks and GHO are expected to join the market over time, each undergoing Aave DAO's governance and risk review process. Supply and borrow caps will be revisited as token supply and venue depth grow.
