Aave Expands Beyond Crypto with Securities Lending Ambitions

Aave founder Stani Kleanthous is making waves in the financial world by expanding Aave's reach beyond cryptocurrency assets. According to him, Aave is working towards including all asset classes through its securities-backed lending business.

The current market model for securities lending sees brokerages like Robinhood and Charles Schwab capturing a significant portion of the fees, often keeping 50% to 85% for themselves while returning only a small percentage to users. In contrast, tokenized stocks on Aave V4 can return the full lending yield to users.

The global securities lending market is massive, with an estimated size of $46 trillion and annual revenue of around $350 billion. However, most of this revenue is captured by these brokerages.