AAVE IS TURNING INTO A CREDIT LAYER AS TOKENIZED STOCKS BECOME COLLATERAL

Summary from the TLDR Crypto newsletter

Aave increasingly looks less like a lending protocol and more like a credit layer, as tokenized stocks cross $3.5 billion in market cap and Coinbase's tokenized stocks become productive collateral on Aave. Stocks, tokenized funds, custodied BTC and ETH, RWAs, and crypto collateral are all increasingly being originated through Aave, while on the borrower side, Coinbase can lend against tokenized equities, institutions can access stablecoin credit, fintechs can embed Aave liquidity, and banks may eventually launch their own fronts for the Aave app, calling the addressable market for Aave closer to credit broadly than DeFi lending specifically.