Tokenized U.S. Stocks Can Now Back Crypto Loans: 7 Stocks Supported
Aave has begun accepting tokens tracking seven U.S. stocks from Coinbase as collateral for USDC loans; eligible users can borrow against these tokens without selling them.
According to a report by The Block, Aave V4 has launched a new market called Equities Hub on the Base network. The service is available only to eligible users outside the U.S. in permitted regions. The assets used as collateral are tokenized stock products issued by Coinbase, not shares held in traditional brokerage accounts.
Which Stocks Can Users Borrow Against?
At launch, the market supports seven tokens tracking shares of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. Users can deposit these assets as collateral and borrow USDC. The stock tokens can initially be used only as collateral; they are not among the assets users can borrow.
Stani Kulechov, founder and CEO of Aave Labs, said the development gives tokenized stocks a new use beyond holding and trading: Users can now take out loans against these assets. According to the announcement, the market operates around the clock.
Initial Limits and Collateral Factors
According to data from risk provider LlamaRisk, the combined initial collateral cap for the seven stock tokens is approximately $29 million. The market’s USDC supply cap is $32 million, while its borrowing cap is $21 million. These are usage caps; they do not represent the amount of collateral deposited or loans issued.
Collateral factors vary by stock, ranging from 65% to 79%. These figures do not represent loan interest rates; they indicate how much each asset contributes to borrowing capacity. Stock prices are supplied through Chainlink’s onchain data feeds.
The system sets risk parameters separately for each asset while pooling stock collateral in a market tied to a single USDC reserve. Aave says more Coinbase stock tokens and GHO as a borrowable asset could be added in the future; any expansion will depend on governance and risk review.