Apple, Nvidia, Tesla Stock Tokens Unlock Aave Loans as China Weighs NVDA Chip Sales to Alibaba & ByteDance

Nvidia stock

Investors holding tokenized stocks tied to Apple, Nvidia, and Tesla can now use them to borrow USDC on Aave, adding a financing option to their holdings. For those following Nvidia stock, the launch comes along with a development in China, where officials are reportedly considering chip purchases by Alibaba and ByteDance. The borrowing market is already live. The potential sales opening still depends on decisions that could matter considerably more to Nvidia’s business.

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Apple, Nvidia and Tesla Stock Tokens Become Loan Collateral

Source: X

Aave announced that seven Coinbase-issued stock tokens are available as collateral on Aave V4 on Base. They include AAPLc, NVDAc and TSLAc, representing exposure to Apple stock, Nvidia stock and Tesla stock. Amazon, Alphabet, Meta, and Microsoft complete the group.

Eligible non-US users in permitted jurisdictions can deposit these tokens and borrow USDC against them. The stock tokens themselves cannot be borrowed at launch.

There is a custody arrangement behind the tokens. Each represents a certificate issued by Coinbase Onchain SPV Ltd., with shares held in segregated accounts through Alpaca Securities. Dividends are reinvested after fees and withholding taxes, increasing the shares backing each token’s claim.

The operating hours deserve attention. Aave accepts transactions around the clock. During weekends and US market holidays, they retain the last published price. Borrowers therefore need to distinguish continuous access to the lending market from continuous repricing of their collateral.

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China Considers Nvidia Chip Purchases By Alibaba and ByteDance

The potential Nvidia China chip sales involve the RTX Pro 5500, designed for high-end professional computers. According to reports, China’s industry ministry asked companies including Alibaba and ByteDance to submit purchasing plans. The ministry reportedly told some companies it intended to approve purchases.

This remains short of a confirmed sales agreement. Nvidia reportedly pointed to both US export restrictions and China’s import limits when asked about the story. The Nvidia spokesperson said,

“US firms continue to be restricted by a combination of outdated US export controls, which cover gaming products released nearly a half a decade ago, and China‘s own limits on US imports.”

For shareholders, the commercial question is how much demand Nvidia could fulfill if permission follows. Approval would need to translate into orders and shipments before investors could assess the revenue contribution.

Aave’s launch has a more immediate impact. Eligible token holders can borrow against their exposure. It does not change Nvidia’s chip sales. The China discussions could, but the available reporting leaves the size and timing of that opportunity unresolved.

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Sahana Kiran

Written by Sahana Kiran

Sahana Kiran has been covering financial markets since 2019, with a focus on cryptocurrencies, fintech, and the geopolitical events shaping them. She previously reported for AmbCrypto and Watcher Guru, and now writes for BlockNow.

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