Borrowing USDC against Coinbase Tokenized Stocks is now possible on a dedicated
@aave V4 instance on
@base.
Coinbase Tokenized Stocks Spoke on
@aave v4 lets users deposit stocks issued by
@coinbase (AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, TSLAc) as collateral and borrow
@circle USDC against them.
This allows users to keep their exposure to the stock without selling it while unlocking liquidity that can then be reinvested in other assets or spent, increasing capital efficiency.
Aave loans have no fixed term so users only need to keep a healthy LTV to avoid liquidation and they can repay the loan whenever they want.
In TradFi, borrowing against a stock portfolio means having access to a margin account that takes time and comes with account approvals, minimum balances requirements, and other broker terms
Aave v4 Coinbase Tokenized Stocks Instance reduces the complexity of this type of operation, opens access to more capital efficency, while leveraging onchain rails. At the same time, it brings more borrow demand for onchain assets that can pay a yield to users that want to provide liquidity to this market.