Coinbase tokenized stocks live on Aave V4 Base as collateral
In brief
- Seven tokenized stocks (AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc, TSLAc) live on Aave V4 Equities Hub
- Deposit tokenized stocks as collateral to borrow USDC while retaining economic exposure to underlying equities
- Chainlink provides onchain market data; pricing updates Sunday evening through Friday evening
- Available to eligible users outside the United States only
- Stocks cannot be borrowed; cross-equity borrowing positions not yet enabled
Collateral mechanics and custody
Users can deposit the tokenized stocks into Aave's Equities Hub and use them to borrow USDC. The structure lets borrowers maintain equity exposure while accessing liquidity without selling. Chainlink provides the market data used to value the collateral onchain.
The tokens are issued by Coinbase Onchain SPV Ltd., with underlying shares held by Alpaca Securities LLC in segregated custody accounts. This setup gives token holders exposure to actual equities rather than synthetic instruments that merely track prices.
Cash dividend distributions are reinvested. Rather than paying dividends directly to holders, distributions purchase additional underlying shares after fees and withholding taxes, compounding the position over time.
Pricing and availability
Chainlink's tokenized equity feeds publish prices from Sunday evening through Friday evening. During weekends and US market holidays, the most recent price remains fixed until the underlying market reopens.
Users can continue to borrow, repay or withdraw during those periods, but the value of the stock collateral does not move until fresh pricing becomes available. This design prevents liquidations triggered by stale data.
The tokenized stocks are available only to eligible users outside the United States.
Borrowing constraints and future expansion
The stocks themselves cannot be borrowed, and users cannot yet open positions that borrow one tokenized equity against another. This limits certain leverage strategies but reduces counterparty and liquidation risk in the early phase.
More Coinbase Tokenized Stocks could be added to the market over time. Aave also plans to introduce GHO as another borrowable asset, subject to governance and risk approval.
