AAVE Price Surges as Coinbase Tokenized Stocks Launch on Aave V4 Base

AAVE is trading around $146 as Aave expands its V4 lending market on Base with Coinbase tokenized stocks. Seven U.S. technology stock tokens can now serve as collateral for USDC loans to eligible users outside the United States.

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AAVE Price Gains as Equities Hub Goes Live

Aave has announced that AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, and TSLAc are now available through its Equities Hub. Users can deposit these assets as collateral and borrow USDC while maintaining exposure to the underlying companies.

The market is built on Aave V4 on Base, and Chainlink provides pricing data for the tokenized equities. LlamaRisk completed the risk assessment, and Aave Labs deployed the V4 instance on behalf of Aave DAO.

After the announcement, AAVE jumped over 7%, trading at $146.65 as of press time, after its recent pullback. Consequently, with the recovery, the AAVE price is up 13% in the last 7 days and 25% in the last 30 days.

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Coinbase Stocks Become Collateral for USDC Loans

Coinbase Onchain SPV Ltd. issues the tokens, while Alpaca Securities holds the underlying shares in segregated custody accounts. This structure gives token holders economic exposure to real equities rather than instruments that only track their prices.

Instead of being distributed, cash dividends are reinvested in underlying shares after fees and withholding taxes apply. An onchain multiplier also accounts for other corporate actions such as stock splits, which alter the underlying claim of each token.

At launch, the Equities Hub contains one USDC reserve, while all seven tokenized stocks can be posted as collateral. However, users cannot borrow the equity tokens or use one tokenized stock to borrow another equity token.

The design allows holders to maintain their liquidity in USDC while retaining their tokenized equity holdings without the need to liquidate them. Every collateral asset is also subject to individual risk factors depending on the characteristics and the market conditions of the asset.

Aave V4 Base Market Operates Around the Clock

Aave remains available around the clock, although Chainlink’s tokenized equity feeds publish prices on a 24/5 schedule. Pricing changes are made during the weekend from Sunday evening to Friday evening and during U.S. market holidays.

During those times, users are still able to borrow, repay, supply, and withdraw, but the price of the collaterals does not change. Another way to temporarily suspend affected reserves is to implement corporate actions before updated token multipliers are applied to correctly reflect the new reality.

Aave is looking to add additional Coinbase tokenized stocks, and GHO may eventually be integrated into lendable assets alongside USDC. Any expansion will be subject to Aave governance procedures and additional risk assessments before activation.

With the Base launch, Aave V4 is furthering its specialization in tokenized assets and real-world financial products. In July, Aave V4 expanded to Avalanche, targeting dedicated credit markets for tokenized real-world assets and institutional finance.