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Aave Founder: Aave V4 Can Reshape the On-Chain Securities Financing Market, with a Target Market Size of Tens of Trillions of Dollars
Svmuu News: Stani Kulechov posted on X, stating that Aave V4 could be used to reshape the on-chain securities financing market. Securities financing is one of Wall Street’s largest yet least-discussed markets. Securities-backed lending is already a multi-trillion-dollar business, with the U.S. repo market averaging approximately $12.6 trillion in daily exposure and collateralized financing totaling $1.3 trillion. wealth management securities-backed loans exceed $400 billion, and the securities lending market has approximately $4.6 trillion in assets on loan, generating a record $15 billion in revenue by 2025. Through its “liquidity hub + modular markets” structure, Aave V4 enables shared liquidity at the base layer while allowing for the creation of segmented markets with different risk parameters, asset ranges, and rules at the upper layer. Aave V4 supports three core securities financing scenarios: securities-backed lending, repurchase agreements, and securities lending. Tokenized securities can be used as collateral to borrow GHO or stablecoins; in repurchase agreements, stablecoins can be borrowed against tokenized securities collateral, with atomic settlement; and in securities lending, tokenized securities themselves can serve as lendable assets, with lending income flowing directly to asset holders. Stani Kulechov noted that Aave V4 could adopt a single shared liquidity hub or split into multiple hubs based on asset class and risk; the former offers deeper liquidity, while the latter provides stronger risk isolation. He believes that a realistic approach might be to start with unified liquidity and then gradually evolve into a multi-hub structure segmented by asset class and risk as the range of collateral types expands.
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