Aave Founder: Aave V4 Could Reconstruct the On-Chain Securities Financing Market, Targeting a Multi-Trillion Dollar Market Size

Stani Kulechov posted on platform X that Aave V4 can be used to reconstruct the on-chain securities financing market. Securities financing is one of the largest yet most overlooked markets on Wall Street. Securities-backed lending is already a multi-trillion dollar business: the U.S. repo market has an average daily exposure of approximately $12.6 trillion, margin financing volume reaches $1.3 trillion, wealth management securities-backed loans exceed $400 billion, and the securities lending market has 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 creating segmented markets on top with different risk parameters, asset ranges, and rules. Aave V4 can support three core securities financing scenarios: securities-backed lending, repo transactions, and securities lending. Tokenized securities can be used as collateral to borrow GHO or stablecoins; repo transactions can borrow stablecoins against tokenized securities with 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 by asset class and risk profile—the former offering deeper liquidity, the latter providing stronger risk isolation. He believes the practical path may start with unified liquidity, then gradually evolve into a multi-hub structure categorized by asset class and risk as collateral types expand.