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      Aave V4 supports tokenized US stocks as collateral for borrowing USDC, with 7 stock tokens launching first

      PANews reported on September 25, citing The Block, that Aave V4 has launched an Equities Hub on Base, allowing eligible non-US users to use seven US stock tokens issued by Coinbase as collateral to borrow USDC, covering Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla. This means tokenized stocks can be used as collateral assets in Aave's lending market for the first time, rather than only for holding or trading.

      It is reported that the market adopts the Aave Hub and Spoke architecture, bringing the seven stock collaterals into the same USDC liquidity pool, while setting independent risk parameters for different stocks and isolating the risks that a single stock may pose. Chainlink will provide on-chain price data for these tokenized stocks. The market's initial total collateral cap is approximately $29 million, with a USDC supply cap of $32 million and a borrow cap of $21 million, and collateral ratios for different stocks ranging from 65% to 79%. Currently, the seven stocks can only be used as collateral, and Aave said it may add more Coinbase tokenized stocks and include GHO as a borrowable asset in the future after governance and risk assessment approval.


      Source: PANews
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