Tokenized shares including Apple and Nvidia have become borrowing collateral on Aave. The credit market runs around the clock, but its stock-price feeds operate on a more limited schedule.
Tokenized shares in companies including Apple, Nvidia and Tesla can now serve as collateral for USDC borrowing on Aave. In its September 25 announcement, Aave Labs said seven Coinbase stock tokens had gone live in an Aave V4 market on Base.
The launch brings U.S. technology equities into Aave’s collateralized lending model. But the ability to borrow at any hour does not mean stock prices update around the clock. Lending continues over the weekend, when the stock-price feeds stop updating.
Liquidity without selling, with eligibility limits
The initial group covers Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla through AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc and TSLAc. Eligible users can borrow USDC against the tokens without selling them. Access is restricted to eligible non-U.S. persons in permitted jurisdictions; being outside the United States is not sufficient on its own.
The tokens are certificates issued by Coinbase Onchain SPV Ltd, with the underlying shares held in segregated custody accounts at Alpaca Securities. Dividends are reinvested after fees and withholding, rather than distributed directly as cash.
“The equities are collateral-only at launch”
The Equities Hub pools the stock tokens as collateral against a single USDC reserve, with a separate collateral factor for each token. Borrowing the equity tokens themselves, or borrowing one against another, is not enabled at launch.
Lending stays open while price feeds pause
Aave keeps lending operations available throughout the week, while prices come from Chainlink’s 24/5 tokenized equity feeds. Over weekends and U.S. market holidays, the feeds retain their last published price. Corporate actions such as stock splits can also pause the affected reserve until the token’s calculation is updated.
An unchanged price does not mean unchanged risk. Interest on USDC debt keeps accruing while price feeds are paused. As debt grows, a position’s health factor can fall; crossing the liquidation threshold can trigger liquidation even over a weekend. A lower price when the market reopens can put further pressure on collateral.
LlamaRisk’s assessment of the market highlights both reopening price gaps and liquidity in the venues where the stock tokens can be sold. For borrowers, monitoring collateral and liquidation risk involves more than checking the last displayed share price.
GHO and more stock tokens await risk review
Aave Labs plans to support more Coinbase stock tokens and add GHO as a borrowable asset. Each addition remains subject to governance and risk review. Supply and borrowing caps will also be reconsidered as token supply and trading depth grow.
Stock tokens can now serve as collateral for DeFi loans. Our Aave analysis examines lending volumes, protocol revenue and the value reaching the AAVE token.
