Key Highlights
- Aave V4 on Base now supports seven Coinbase tokenized stocks as collateral.
- The supported assets are AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc and TSLAc.
- Eligible non-U.S. users can supply the tokens and borrow USDC against them.
Coinbase’s tokenized U.S. stocks are now available as collateral in an Aave V4 lending market on Base, allowing eligible non-U.S. users to borrow USDC against seven tokenized equities.
According to an announcement published on September 25, the market supports AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc and TSLAc. USDC is the only borrowable asset at launch, while the tokenized stocks can only be supplied as collateral.
The deployment operates through Aave’s dedicated Equities Hub on Base, separate from its other lending markets.
Seven tokenized stocks supported at launch
The initial market is limited to seven Coinbase tokenized equities.
Users can supply the assets and use them as collateral for USDC loans. Each equity has separate collateral parameters, supply caps and borrowing limits.
The market does not allow users to borrow the tokenized stocks themselves or use one tokenized equity as collateral for another.
Tokens represent underlying shares
The tokenized equities are structured to represent underlying stock positions rather than simply track their market prices.
Aave’s technical assessment says the seven Coinbase B20 equities are certificates representing shares held in segregated custody under a trust structure. The underlying shares are held by Alpaca Securities LLC, according to the assessment.
The tokens can therefore be used within Aave’s lending infrastructure while remaining linked to the underlying securities.
Coinbase’s tokenized-stock products are currently available only to eligible non-U.S. customers in permitted jurisdictions.
Dividends and stock splits affect token balances
The token structure determines how certain corporate actions are reflected for holders.
Dividends are reinvested into additional shares rather than distributed as cash. Fees and applicable withholding taxes are deducted before the adjustment is reflected in the holder’s position.
Stock splits are handled through changes to a multiplier associated with the token.
Aave’s technical review also notes that the token contracts include controls governing minting and redemption.
Chainlink provides equity pricing
Aave uses Chainlink total-return feeds to value the tokenized stocks used as collateral.
Chainlink highlighted the integration in an X post on September 25, saying Coinbase’s tokenized stocks are now live on Aave V4 on Base with Chainlink data providing the pricing infrastructure.
The post also pointed to AAPLc, NVDAc and other supported equities becoming usable as collateral on Aave.
The feeds follow U.S. equity-market hours on a 24/5 schedule. During weekends and market holidays, the latest available price remains in use until the feeds resume.
The lending market itself remains accessible outside stock-market hours, but collateral valuations may not update while the underlying equity feeds are inactive.
This creates a distinction between when users can access the lending market and when the collateral’s reference price can change.
Equities hub keeps the market separate
The deployment uses a separate Equities Hub on Base rather than combining the tokenized-stock market with Aave’s other lending pools.
The market includes a USDC reserve and dedicated parameters for the seven supported equities.
USDC suppliers provide liquidity, while borrowers use the tokenized stocks as collateral.
The isolated structure limits direct exposure between this market and other Aave lending pools on Base.
Access Is limited to eligible non-U.S. users
The market’s availability follows the restrictions attached to Coinbase’s tokenized equities.
The tokenized stocks are offered under Regulation S to eligible non-U.S. persons in permitted jurisdictions and are not available to U.S. persons.
The restrictions therefore apply not only to holding the tokenized equities but also to their use as collateral within Aave.
Tokenized equities enter DeFi lending
The deployment adds a lending use case to Coinbase’s tokenized-stock products, but the initial market remains narrow.
Only seven equities are supported, USDC is the sole borrowing asset, and access is restricted by jurisdiction.
Coinbase is not providing the loans. Users interact with Aave’s lending infrastructure on Base, while the tokenized equities serve as collateral for USDC borrowing.
Any expansion to additional stocks would depend on Aave governance, risk assessments, liquidity and applicable access requirements.
For now, the deployment connects Coinbase’s tokenized equities with Aave’s lending infrastructure while keeping the market subject to separate collateral, pricing and eligibility rules.
Also Read: Ethena Begins Equity Basis Trade on Binance With Tokenized Stocks
