Aave Founder: Aave V4 is a reconfigurable on-chain securities financing market, targeting a market size of tens of trillions of dollars

BlockBeats News, June 20 — Aave founder Stani Kulechov said in a post that Aave V4 can be used to rebuild the on-chain securities financing market. He said that securities financing is one of Wall Street’s largest markets, yet one that receives relatively little attention from the outside. Securities collateral lending is already a business worth tens of trillions of dollars, including the U.S. repo market with average daily exposure of about $12.6 trillion, a secured financing scale of $1.3 trillion, wealth management securities collateral loans exceeding $400 billion, and approximately $4.6 trillion of assets in the securities lending market that are lent out, generating a record $15 billion in revenue in 2025.

Through a “liquidity hub + modular market” structure, Aave V4 can share liquidity at the underlying layer and set up segmented markets in the upper layer with different risk parameters, asset scopes, and rules. Aave V4 supports three core securities financing scenarios: securities collateral loans, repurchase transactions, and securities lending. Tokenized securities can be borrowed out as collateral to borrow GHO or stablecoins; repurchase transactions can borrow stablecoins by using tokenized securities as collateral and achieve atomic settlement; in securities lending, the tokenized securities themselves can become lendable assets, and lending income flows directly to the asset holders.

Stani said that Aave V4 can adopt either a single shared liquidity hub or multiple hubs split by asset class and risk. The former has deeper liquidity, while the latter provides stronger risk isolation. He believes that the real-world path may be to start with unified liquidity, and then gradually evolve into a multi-hub structure divided by category and risk as the types of collateral expand.