Aave is pushing into traditional securities finance. On June 26, founder Stani Kulechov said the protocol plans to move beyond crypto-backed lending into securities-backed loans and securities lending, using Aave V4 to bring tokenized stocks onchain and pursue a market with about $4.6 trillion in securities on loan globally.
Aave V4 expands the protocol’s scope beyond crypto assets
The initiative is centered on Aave V4, which is designed to connect DeFi infrastructure with traditional securities markets. Kulechov said Aave is widening its total addressable market from crypto assets to all asset classes, with tokenized financial assets forming the basis for securities-backed borrowing and lending.
Aave executive Luigi D’Onorio DeMeo added detail on how tokenized equities could be used in onchain lending. He said investors today receive only part of the revenue generated in securities lending, while brokers and trading platforms often keep most of the borrowing fees tied to customer-held assets. Aave’s model is aimed at changing that split.
Tokenized securities could back stablecoin loans onchain
DeMeo said the global securities lending market currently has around $4.6 trillion in securities on loan and generates roughly $35 billion in annual revenue. Under the Aave V4 concept, users would be able to supply tokenized stocks directly onchain and earn full borrowing rates through transparent pricing.
He also said the structure would operate without intermediaries and without rehypothecation. In the proposed setup, tokenized securities could be posted as collateral for stablecoin loans, while repo-style transactions could settle directly onchain. Earlier this month, Kulechov also pointed to collateralized loans backed by securities, repurchase agreements, and direct securities lending as areas the protocol is targeting.
Revenue metrics and institutional ties frame the expansion
The plan follows Aave’s previously stated revenue focus. In May, Kulechov said the protocol would pursue a 12-month revenue-led strategy. Current protocol figures provide context: Aave generates about $123 million in annualized revenue and holds approximately $12.4 billion in total value locked.
Aave also has institutional links through its Horizon platform, developed with VanEck, Circle, and Securitize. That platform is focused on real-world asset lending and tokenized finance infrastructure. Kulechov described securities finance as one of Wall Street’s largest markets, which is the segment Aave now wants to enter.