Shares that can do more

Selling stock to raise cash is like selling your house to pay for a new kitchen: you get the money, but you give up the asset you were counting on to grow. Homeowners solve this by borrowing against the house. Shareholders can do the same, but in traditional finance those loans are arranged by brokers and private banks, on private terms, for clients who meet their minimums.

Aave turns that into an open market. Borrowers deposit tokenized stocks as collateral, borrow USDC within the market’s limits, and repay whenever they choose. Publicly visible terms help borrowers understand the risks before committing and let lenders assess what backs their loans.

Why Base

Stock-backed lending needs three things in one place: the shares, a venue to trade them, and dollars to lend. Coinbase’s tokenized stocks are issued on Base and backed by shares held in a regulated trust for token holders. That relationship to the underlying asset mattered to Aave, whose approach centers on giving users control over their holdings.

A lending market also needs buyers for its collateral. If a position becomes undercollateralized, liquidators must be able to sell enough of the pledged assets to cover the debt. Coinbase tokenized stocks already trade on onchain exchanges like Aerodrome. Aave says its lending limits will be reviewed as token supply and trading depth grow. Native USDC supplies the borrowing currency, low transaction fees reduce the cost of managing a loan, and an established DeFi community gives Aave a base of potential borrowers, liquidity suppliers, and developers.