Aave publishes securities finance blueprint for V4 credit layer

Aave Labs published "Rebuilding securities finance on Aave V4", a research post detailing how the multi-trillion-dollar securities finance market can move onchain with Aave V4 as the credit layer. The post cites repo averaging ~$12.6 trillion in daily U.S. exposures, ~$4.6 trillion of assets out on loan in securities lending, and a record $15 billion in 2025 securities-lending revenue — almost none of which touches a blockchain today.

• Maps V4's hub-and-spoke architecture onto three flows: securities-backed lending, repo, and securities lending
• Proposes two market structures: a single shared Liquidity Hub, or multiple hubs segregated by asset category and risk
• Notes Aave already secures ~$23 billion in liquidity and that Aave Horizon has passed $500 million in RWA-backed deposits