Aave V4 aims to offer securities-backed loans and lending using tokenized stocks onchain. The protocol targets the $4.6 trillion securities lending market with transparent, intermediary-free
Aave is moving beyond crypto lending and into securities-backed finance, with founder Stani Kulechov outlining plans to target traditional asset markets through Aave V4. The announcement came on June 26, when Kulechov said Aave would expand from crypto assets into securities-backed loans and securities lending, bringing tokenized stocks into a market that holds about $4.6 trillion in securities on loan globally.
The expansion centers on Aave V4, which aims to connect decentralized finance infrastructure with traditional securities markets.
According to Kulechov, Aave is broadening its total addressable market from crypto assets to all asset classes. The initiative includes securities-backed loans and securities lending using tokenized financial assets.
Building on that strategy, Aave executive Luigi D’Onorio DeMeo outlined how tokenized equities could support onchain lending activity.
He said investors currently receive only a portion of securities lending revenue. Meanwhile, brokers and trading platforms often retain most borrowing fees generated from customer-held assets.
According to DeMeo, the global securities lending market has roughly $4.6 trillion in securities on loan and produces about $35 billion in annual revenue.
As the plan develops, Aave V4 would allow users to supply tokenized stocks directly onchain.
DeMeo said participants could earn full borrowing rates through transparent pricing mechanisms. He also noted the model would operate without intermediaries and without rehypothecation.
Earlier this month, Kulechov detailed additional areas targeted by the protocol. Those areas include collateralized loans backed by securities, repurchase agreements, and direct securities lending activities.
Under the proposed structure, tokenized securities could serve as collateral for stablecoin borrowing. Repo-style transactions could also settle directly onchain.
The latest initiative follows Aave's previously announced revenue-focused strategy. In May, Kulechov said the protocol would pursue a 12-month revenue-led approach.
Current protocol metrics provide context for the expansion. Aave generates about $123 million in annualized revenue and holds approximately $12.4 billion in total value locked.
The project also maintains institutional relationships through its Horizon platform, developed alongside VanEck, Circle, and Securitize. That platform focuses on real-world asset lending markets and tokenized finance infrastructure.
Meanwhile, Kulechov described securities financing as one of Wall Street's largest markets, highlighting the scale of the sector Aave now plans to enter.
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