Aave Founder: Aave V4 Can Reconstruct the On-Chain Securities Financing Market, Targeting a Market Size Worth Trillions of Dollars

Odaily reports that Stani Kulechov posted on X, stating that Aave V4 can be used to reconstruct the on-chain securities financing market. Securities financing is one of the largest yet least noticed markets on Wall Street. Securities-backed lending is already a multi-trillion dollar business, with the U.S. repo market having a daily exposure of approximately $12.6 trillion, margin financing reaching $1.3 trillion, wealth management securities-backed loans exceeding $400 billion, and the securities lending market having around $4.6 trillion in assets on loan, generating a record $15 billion in revenue in 2025. Through a "Liquidity Hub + Modular Market" structure, Aave V4 can share liquidity at the base layer while offering segmented markets with different risk parameters, asset ranges, and rules on the upper layer. Aave V4 can support three core securities financing scenarios: securities-backed loans, repo transactions, and securities lending. Tokenized securities can be used as collateral to borrow GHO or stablecoins; repo transactions can involve borrowing stablecoins against tokenized securities collateral to achieve atomic settlement; in securities lending, tokenized securities themselves become lendable assets, with lending income flowing directly to asset holders. Stani Kulechov stated that Aave V4 could adopt a single shared liquidity hub or split into multiple hubs based on asset class and risk, with the former offering deeper liquidity and the latter providing stronger risk isolation. He believes the realistic path may start with unified liquidity and then gradually evolve into a multi-hub structure categorized by asset class and risk as collateral types expand.