Aave Reshares Linda Jeng’s Post on Tokenized Securities as Collateral

Aave reshared a post from Linda Jeng about tokenized securities’ potential use as collateral in decentralized finance, highlighting a lending role beyond trading the assets onchain.

Collateral is an asset a borrower deposits to back a loan. Aave’s markets let users supply supported assets and borrow against them, connecting tokenized securities to lending.

The protocol already supports this use case in its Base market for Coinbase-tokenized shares, which accepts the shares as collateral for USDC loans. Only eligible users outside the United States can access the market.