Apple's token model and NVIDIA have already been used as collateral for USDC loans on Aave .

Aave V4 on Base Open Equities Hub used seven Coinbase U.S. tokens as collateral for the loan.[5]

What is Aave V4 on Base and what does it open?
Aave V4 launched the Equities Hub on Base, which initially secured U.S. stocks issued by Coinbase in the form of seven tokens: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla; users outside the United States who qualified conditionally could pledge these tokens for redemption.USDC Initially, these token assets were used as collateral only, with prices based on Chainlink's market data.DeFi

From tradable tokens to upside collateral.DeFi
Previously, tokens were often viewed as assets that could be traded and transferred. But the launch of this Hub has allowed tokens to play a role similar to securities in the credit market: they are used as collateral rather than being sold for cash, so users do not have to sell tokens for loans.USDC They can retain their holding status and extract liquidity from the security.

Each of these tokens is issued by Coinbase Onchain SPV Ltd. and represents a certificate tied to an actual stock held with Alpaca Securities in segregated custody, thus not being a synthetic token that merely quotes the share price but provides access to the economic value of real shares on that market.

Why is it so much harder to save Ben Chen than you think?
In the general financial market, investors can borrow securitized assets without having to sell shares but on a chain it is more difficult because the security requires reliable ownership systems, clear custody, up-to-date quotes and mechanisms for forced sale in case of default. The Aave Equities Hub was an early attempt to bring token stocks into areas where traditional futures were unfamiliar.

On Aave, a stock token can be traded on an exclusive securities market where there is only one type of borrowed asset at the outset.USDC Users cannot borrow tokens directly and cannot create loans with stocks together. The structure is simple: place an asset that has a value based on the share, then extract its status as a digital dollar.

The risk of Chainlink and the open market.
Chainlink is a source of price data for valuing securities, but the token's stock market information operates on a weekday basis. The U.S. stock market does not continuously adjust its prices over the weekend; this poses a slightly unique risk to 24-hour credit protocols because security prices may not move in line with actual markets on weekends or holidays even if the protocol remains open.

User-side restrictions and oversight
Access is restricted to non-U.S.-based users and qualified under Regulation S, which only opens in authorized jurisdictions so it's not a lending channel for U.S. retailers. The startup market also has risk limits on the number of securitiesUSDC that can be borrowed, and future additional assets or features are subject to protocol oversight mechanisms and risk assessments.

Text for readers in Thailand and Myanmar
Readers in Thailand who are familiar with local platforms such as Bitkub or the regulatory framework of GLT should distinguish that Aave is a protocolDeFi on Base rather than a local service in Thailand, while readers in Myanmar may use Stablecoin asUSDC an alternative to digital dollars. Increasing the role of tokens as collateral further illustrates the link between digital assets and the stock market if they need to be converted into THB value or accessed through local services.

Original content provided by News Desk and edited by Samuel Rae.