Aave Founder: Aave V4 Can Reshape On-Chain Securities Financing Market, Targeting Trillions in Marke

On June 20, Aave founder Stani Kulechov stated that Aave V4 can be used to reconstruct the on-chain securities financing market. He noted that securities financing is one of the largest markets on Wall Street that receives little attention from the outside, with securities collateralized loans already being a multi-trillion dollar business. The daily exposure in the U.S. repurchase market is approximately $12.6 trillion, with secured financing reaching $1.3 trillion, wealth management securities collateralized loans exceeding $400 billion, and about $4.6 trillion in assets in the securities lending market. This market is expected to generate a record $15 billion in revenue by 2025.

Aave V4 utilizes a 'liquidity hub + modular market' structure, allowing for shared liquidity at the base level while establishing segmented markets with different risk parameters, asset ranges, and rules at the upper level. Aave V4 can support three core securities financing scenarios: securities collateralized loans, repurchase transactions, and securities lending. Tokenized securities can be used as collateral to borrow GHO or stablecoins; repurchase transactions can utilize tokenized securities as collateral to borrow stablecoins and achieve atomic settlement; in securities lending, the tokenized securities themselves can become borrowable assets, with lending income flowing directly to asset holders.

Stani indicated that Aave V4 could adopt a single shared liquidity hub or split into multiple hubs by asset class and risk. The former offers deeper liquidity, while the latter provides stronger risk isolation. He believes that the realistic path may start with unified liquidity and, as the types of collateral expand, gradually evolve into a multi-hub structure categorized by asset class and risk.