Aave V4 Launches Dollar-Euro Borrowing on Circle’s Arc, Boosting Euro Liquidity in DeFi

Babylon’s proposal to bring native Bitcoin collateral to Aave V4 has advanced to a new governance stage, awaiting further votes and security reviews. The initiative follows an earlier May submission and a June community vote that passed.

Users would lock BTC in Bitcoin‑network vaults, mint a non‑transferable Ethereum token to represent the collateral, and borrow stablecoins on Aave without bridging or wrapping BTC, delivering native‑Bitcoin lending to the DeFi ecosystem.

Babylon's plan to bring native Bitcoin collateral to Aave V4 has moved into a new governance stage, with a fresh vote underway after an initial review.

If passed, the proposal could unlock billions of Bitcoin liquidity for DeFi lending, yet it still requires additional community voting and a thorough security audit before launch, representing a key test for integrating native assets into decentralized lending protocols.

Babylon has unveiled a native Bitcoin collateral solution for Aave V4, allowing BTC holders to leverage their holdings without surrendering custody.

This move could disrupt traditional custodial models, expand Bitcoin's utility in DeFi lending, and challenge wrapped token alternatives, potentially driving significant adoption of Aave V4's next-generation platform.

Aave v4 on Base has attracted $4.7 million in Coinbase‑issued tokenized stock deposits, signaling a major step toward merging traditional equities with decentralized finance.

The inflow underscores both the growth opportunity for DeFi platforms embracing real‑world assets and the regulatory and volatility risks that accompany tokenized securities, setting the stage for broader institutional interest.

Aave V4 has launched an Equities Hub on Base, allowing eligible non‑U.S. users to deposit Coinbase‑issued tokenized shares of Apple, Nvidia, Tesla and four other major U.S. stocks as collateral to borrow USDC.

The move brings traditional brokerage‑style lending on‑chain, using Chainlink price feeds and segregated custody via Alpaca Securities, while keeping the equities collateral‑only and USDC the sole borrowable asset at launch.

Coinbase's tokenized US stocks are now live on Aave V4 on Base, enabling eligible users to collateralize seven tech shares to borrow USDC.

This integration bridges traditional equity exposure with DeFi lending, potentially boosting liquidity for tokenized assets and signaling growing institutional interest in on-chain finance. It also highlights Base's role as a hub for innovative Coinbase products.