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

Odaily reports that Stani Kulechov stated on X platform that Aave V4 can be used to restructure the on-chain securities financing market. Securities financing is one of the largest but lesser-known markets on Wall Street. Securities-backed lending is already a multi-trillion dollar business, with the US repo market having an average 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 its "Liquidity Hub + Modular Market" structure, Aave V4 can share liquidity at the base layer while setting up segmented markets with different risk parameters, asset scopes, 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 borrow stablecoins using tokenized securities as collateral and achieve atomic settlement; in securities lending, the tokenized securities themselves can become lendable assets, with lending income flowing directly to asset holders. Stani Kulechov indicated 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 better risk isolation. He believes the realistic path might start with unified liquidity and, as collateral types expand, gradually evolve into a multi-hub structure categorized by class and risk.