According to data highlighted by Token Terminal, Aave V4 currently holds $10.1 million in tokenized equities issued by Coinbase, making it the largest decentralized finance (DeFi) platform for this type of asset. It accounts for over 53% of deposits in DeFi platforms serving these equities, and another metric measuring borrower activity indicates that this market is bringing new users to Aave on this network.
Key points
- Aave accounts for more than half of the DeFi deposits related to Coinbase's tokenized stocks.
- Three-quarters of borrowers using tokenized "Magnificent Seven" U.S. stocks as collateral are first-time users of Aave on Base.
- Equities Hub allows eligible users outside the United States to borrow USDC using tokenized stocks as collateral.
Aave V4 leads Coinbase tokenized stock deposits
Aave holds over 53% of the share, measuring deposits related to Coinbase tokenized stocks distributed across various DeFi platforms, not the entire DeFi market. A total locked value (TVL) of $10.1 million places its V4 deployment on Base among the top in this niche.
An earlier snapshot dated October 18, 2026, showed $9.57 million in tokenized deposits of the "Big Seven" U.S. stocks on Aave Equities Hub, representing 35.6% of the $26.9 million total tokenized supply of these stocks. This supply metric is distinct from Aave’s share of deposits on competing DeFi platforms.
Borrowers have borrowed $4.08 million in USDC against these collateral assets. By mid-October, the number of borrowing wallets had increased from 8 to 144, and three-quarters of these borrowers had never previously used Aave on Base.
From launch to October 18, the loan-to-value ratio increased from 22.2% to 42.9%; collateralization rates ranged between 65% and 79%, depending on the token; the total collateral cap at the hub’s launch was approximately $29 million.
Stock collateral extends Aave beyond crypto assets.
Aave V4’s support for Coinbase’s tokenized stocks expands the protocol’s lending services beyond traditional cryptocurrencies to a broader range of assets. Its Equities Hub launched on September 25, 2026, as part of V4’s release on Base, an Ethereum Layer 2 network incubated by Coinbase.
Eligible users outside the United States can deposit tokenized shares of the "Magnificent Seven" U.S. stocks and use them as collateral to borrow USDC. This hub operates as an isolated pool, and USDC is the only borrowable asset at launch.
These stock tokens can only be used as collateral; users cannot borrow the stock tokens themselves. Cross-collateralization between different stocks is also prohibited, so depositing one tokenized stock does not allow users to borrow another.
These stocks are backed by actual shares held by Alpaca Securities. Aave uses Chainlink’s pricing data and suspends trading on weekends and U.S. holidays to align on-chain operations with traditional market hours.
Borrower growth is occurring in a crypto market with diverging performance.
Aave's expansion into the tokenized stocks sector coincides with a divergent performance in the cryptocurrency market, where altcoins exhibit varying momentum. Within this niche, liquidity and users' financial options are growing, though stock tokens on this hub remain limited to collateral purposes.
Improved regulatory clarity is also supporting the growth of platforms like Aave. Access to Equities Hub remains limited to eligible users outside the United States, reflecting the regulatory landscape surrounding tokenized securities.
Borrower data shows participation alongside deposit growth: this market is attracting users who previously did not borrow on Base via Aave. Whether additional assets, such as stocks or alternative assets like GHO, will be added under this framework depends on Aave governance.
This article was generated with the assistance of artificial intelligence and reviewed by the editorial team.