Odaily reported that Aave founder Stani Kulechov posted on X that Aave V4 can be used to rebuild the on-chain securities financing market. He described securities financing as one of Wall Street’s largest yet less publicly discussed markets, and said securities-backed lending is already a multi-trillion-dollar business. In his framing, Aave V4 connects on-chain liquidity, tokenized securities and differentiated risk rules to bring several major securities financing activities onto blockchain-based infrastructure.
A multi-trillion-dollar securities financing target
Kulechov cited several figures to outline the scale of the existing market. The average daily exposure of the U.S. repo market is about $12.6 trillion. Margin financing stands at $1.3 trillion. Securities-backed loans in wealth management exceed $400 billion. In the securities lending market, around $4.6 trillion in assets are on loan, and that market generated a record $15 billion in revenue in 2025. These figures define the market scope he referenced when discussing the role Aave V4 could play in securities financing.
According to his post, Aave V4 is designed around a “liquidity hub plus modular markets” structure. Liquidity can be shared at the base layer, while segmented markets can be created above it with different risk parameters, asset ranges and operating rules. This means a common liquidity foundation can serve multiple asset types and financing arrangements, rather than forcing all assets and rules into one undifferentiated market.
Three core use cases for Aave V4
Kulechov said Aave V4 can support three core securities financing scenarios: securities-backed loans, repo transactions and securities lending. For securities-backed loans, tokenized securities can be used as collateral to borrow GHO or stablecoins. For repo transactions, tokenized securities can be pledged to borrow stablecoins while enabling atomic settlement. For securities lending, tokenized securities themselves can become borrowable assets, with lending revenue flowing directly to asset holders.
He also described two possible liquidity-hub models for Aave V4. One option is a single shared liquidity hub, which offers deeper liquidity. Another option is to split hubs by asset class and risk profile, which provides stronger risk isolation. Kulechov said the practical path is to begin with unified liquidity and then, as collateral types expand, gradually evolve into a multi-hub structure organized by category and risk.