Non-fungible token (NFT) project Pudgy Penguins has expanded the retail reach of its trading card game through a nationwide rollout at Target stores in the United States. 

According to a press release sent to Cointelegraph, the launch of Vibes Series 3 marks the game’s biggest retail expansion to date and brings the total number of circulated cards to 15 million. The new set includes additional gameplay mechanics, original artwork and appearances from characters in the Moonbirds collection. 

The rollout shows how Pudgy Penguins is extending its NFT-born intellectual property into mainstream consumer products as it aims to build a broader entertainment franchise beyond digital assets. 

Pudgy Penguins developed Vibes in partnership with Orange Cap Games, with Series 3 following two earlier releases. The digital collectible project is the fourth-largest NFT collection by market capitalization, according to data tracker NFT Price Floor. 

Top five NFT collections by market capitalization. Source: NFT Price Floor

Pudgy Penguins builds beyond NFTs

The project has also expanded into toys, gaming, licensing and other consumer products.

Pudgy Penguins has spent years turning its Ethereum-based NFT collection into a broader consumer brand. Its physical toys entered more than 2,000 Walmart stores in 2023, and CEO Luca Netz said in May 2024 that more than 1 million toys had been sold over the preceding 12 months.

The project’s licensing model also allows NFT holders to receive 5% of net revenue from physical products featuring their individual penguins.

Related: Binance to end NFT support on exchange, shift service to wallet

The franchise has pursued a similar expansion through gaming. In 2025, Pudgy Penguins launched the skill-based Pengu Clash game on The Open Network. At the time, Netz described gaming as a vehicle for bringing the project’s intellectual property to wider audiences.

It also launched a mobile game called Pudgy Party in August 2025. According to Pudgy Penguins, the game’s downloads exceeded 1 million. However, the project said on Monday that it would halt further development of the game and focus its resources on a browser-based game called Pudgy World. 

Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Strategy co-founder Michael Saylor has defended the company’s Bitcoin-backed capital strategy after its STRC preferred stock fell well below its $100 par value and triggered fresh criticism from market participants.

According to a June 20 X post by Saylor, Strategy’s Bitcoin and cash reserves currently exceed its outstanding debt by approximately $48 billion. He noted that the company has raised more than $60 billion in additional capital since 2022 and used those funds to acquire Bitcoin.

When I gave this speech in October 2022, Bitcoin traded near $20,000, Strategy held 130,000 BTC worth about $2.6 billion, and $MSTR was ~$24 split-adjusted. Weeks later, after Bitcoin fell below $16,000, our debt exceeded the combined value of our BTC and cash reserves by ~$300… pic.twitter.com/nWl9YlN11s

— Michael Saylor (@saylor) June 20, 2026

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To illustrate the contrast with today, Saylor pointed to Strategy’s position during the 2022 crypto bear market. At the time, the company held around 130,000 Bitcoin worth roughly $2.6 billion while Bitcoin traded near $20,000.

After the cryptocurrency fell below $16,000, Strategy’s debt temporarily exceeded the combined value of its Bitcoin and cash reserves by about $300 million. During the same period, MSTR stock declined from around $24 to the $13 range on a split-adjusted basis.

“We stayed focused, strengthened the company, and executed our strategy. Since then, Strategy has raised over $60 billion of additional capital and invested it in Bitcoin, adding more than 716,000 BTC,” said Saylor.

The comments arrived as investors debated the implications of STRC’s recent decline and questioned whether the company’s financing model remains sustainable.

Bitcoin critic Peter Schiff escalated those concerns by suggesting that investors could pursue legal action against Strategy and Saylor. Schiff also argued that Saylor may have violated SEC marketing rules through the way he promoted the preferred stock offering.

Some investors see Bitcoin sales as the simplest solution

Recent pressure on STRC has also prompted alternative proposals from market observers.

As previously reported by crypto.news, Arca Chief Investment Officer Jeff Dorman suggested the company may eventually need to sell between $3 billion and $4 billion worth of Bitcoin to ease pressure on its capital structure and support STRC holders.

While Dorman assigned a 25% probability to that outcome, he said his base-case scenario, with a 70% probability, involves Strategy continuing to sell small amounts of MSTR stock. Under that scenario, Bitcoin holdings would remain largely intact, though common shareholders could face additional downside.

Supporters reject comparisons to Terra

While criticism has intensified, several Bitcoin advocates have publicly defended Saylor and Strategy.

Fox and Sky News contributor David Gokhshtein argued on X that Bitcoin’s current market value cannot be attributed to a single individual. He criticized efforts to blame Saylor for broader market movements and dismissed comparisons between Strategy and the collapsed Terra ecosystem.

Those comparisons gained traction after crypto analyst Ali Martinez suggested similarities between STRC and Terra’s LUNA token structure. Responding to the debate, Bitcoin advocate Samson Mow described STRC as a “brilliant instrument” and stated that he sees no structural flaw in the security unless investors believe Bitcoin will fail to appreciate over the long term.

$STRC is a brilliant instrument. It’s effectively what I tried to do with Bitcoin Bonds: strip out the volatility from Bitcoin and share the upside with investors. There is a massive market for a product like this somewhere in the ballpark of $200 trillion.

There’s nothing…

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— Samson Mow (@Excellion) June 19, 2026

Separate concerns have also emerged around liquidity. Market maker QCP previously estimated that Strategy’s available resources could cover preferred dividend obligations for roughly seven and a half months.

QCP added that if existing financing channels become less attractive, alternative funding options may eventually be required, with Bitcoin sales remaining one possible path.

TLDR:

• Venus Core Pool now accepts TSLAB, NVDAB, and SPCXB as collateral for borrowing assets.
• Users keep stock price exposure while unlocking liquidity without selling their holdings.
• Binance, PancakeSwap, and Trust Wallet support the tokenization and transfer pathway.
• Rollout follows conservative risk parameters set through Venus governance procedures.

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Venus Protocol has launched tokenized stocks as collateral for the first time, introducing bStocks to its Core Pool on BNB Chain.

The integration lets users borrow against tokenized stock positions without selling their holdings. This marks the first tokenized stock collateral market available on the platform.

bStocks Enter Venus Core Pool

Venus Core Pool now supports TSLAB, NVDAB, and SPCXB as eligible collateral assets. These bStocks represent tokenized versions of Tesla, Nvidia, and SpaceX-linked stock exposure.

Users supplying bStocks retain price exposure to the underlying equities. At the same time, they unlock borrowing power within the protocol.

Borrowers can access supported assets in Venus Core Pool using bStocks as backing. This includes stablecoins like USDT, USDC, and U.

Other listed tokens on the platform are also available for borrowing. The structure allows holders to keep their stock exposure while accessing liquidity.

Venus Core Pool remains the largest decentralized lending market on BNB Chain. bStocks now sit alongside BTC, ETH, BNB, and major stablecoins in the pool.

This places tokenized equities within the same liquidity infrastructure backing billions in active lending. Venus describes the addition as part of its core financial stack rather than a separate offering.

The bStocks launch follows earlier tokenized commodity listings on Venus, including XAUm. Those markets showed demand for real-world asset exposure within decentralized finance.

Venus is now extending that approach from commodities into equities. This broadens the categories of tokenized assets usable as on-chain collateral.

Ecosystem Collaboration Powers the Rollout

The launch involved coordination across multiple platforms within the BNB Chain ecosystem. Binance supplies the tokenization infrastructure behind bStocks.

Users can convert existing Direct Stock holdings into bStocks without fees. Alternatively, bStocks can be purchased directly through Binance Spot.

PancakeSwap and Trust Wallet provide secondary market access for bStocks once tokenized. Holders can move tokens into self-custody wallets through these platforms.

From there, bStocks can be supplied directly to Venus Core Pool. This completes the path from tokenization to active collateral use in DeFi.

Venus Protocol’s Head of BD, Leon, said tokenized assets are turning into a genuine bridge between traditional finance and on-chain systems.

He described the development as a working product rather than a concept, adding that allowing users to borrow against tokenized stock positions without selling expands the meaning of collateral on BNB Chain.

The initial rollout includes a limited set of bStocks under conservative risk parameters. These parameters were set through Venus governance processes.

Any future expansion to additional tokenized stocks will require governance approval. Collateral markets operate continuously, allowing borrowers to access credit at any time.

Capital remains at risk throughout participation in these markets. Tokenized stock values depend on third-party issuers and available liquidity.

Borrowing positions may face automatic liquidation if collateral values decline. Users should review all disclosures before participating in these markets.

Ethereum is staring at a looming funding gap for its core development work, according to a warning from former Ethereum Foundation contributor Trenton Van Epps. In a blog post published Thursday, Van Epps argued that reductions in Ethereum Foundation spending and the April expiration of the Client Incentive Program leave the broader “core development ecosystem” needing roughly $30 million per year to sustain itself.

Van Epps characterized the situation as a potential “slow-burning funding crisis,” while pointing to ongoing organizational churn at the Ethereum Foundation that has accelerated departures among leadership and staff. The concern is already colliding with a separate policy debate: Ethereum co-founder Vitalik Buterin has said the foundation’s remaining resources are limited and that it has been prioritizing “longevity over breadth” with less ETH selling.

Key takeaways

• Van Epps estimates Ethereum’s core development funding need at about $30 million annually, citing spending cuts and the April end of the Client Incentive Program.
• He warned of a potential “slow-burning funding crisis” within the next three to nine months unless new funding sources emerge.
• Buterin has said the Ethereum Foundation holds only about 0.16% of Ether’s total supply, limiting its ability to cover a wide range of ecosystem costs.
• Recent treasury actions—including unstaking and selling ETH—suggest the foundation has been adjusting how it finances development needs.

Why Van Epps says Ethereum could run into a funding cliff

Van Epps’ central claim is that the Ethereum Foundation’s recent financial and program changes have removed support that previously helped keep core development functioning. He linked the risk directly to two developments: the Ethereum Foundation’s spending reduction and the expiration of the Client Incentive Program in April.

Based on conversations with core development contributors, Van Epps said the network’s core development ecosystem requires approximately $30 million in annual funding. He further warned that without additional funding streams, Ethereum may be headed toward a “slow-burning” shortfall—an issue that may not trigger an immediate shutdown, but could gradually worsen delivery timelines, contributor incentives, and the capacity of maintainers across critical client and infrastructure components.

Van Epps wrote that the crisis timeframe could land within three to nine months, making the next few quarters a crucial window for funding stability.

Leadership departures intensify the pressure on continuity

Van Epps’ funding concerns come as the Ethereum Foundation itself undergoes significant personnel changes. Earlier coverage from Cointelegraph noted a wave of departures from the organization, including the announcement from co-executive director Hsiao-Wei Wang that she would step down from her role.

According to that reporting, the estimated number of layoffs and departures at the Ethereum Foundation reached 19 so far this year. While staffing changes do not automatically translate into funding shortages, they can compound uncertainty for a system already dependent on predictable support for long-term engineering work.

Cointelegraph also reported it was unable to independently verify Van Epps’ estimated $30 million annual requirement and contacted the Ethereum Foundation for comment.

Buterin’s “longevity over breadth” and the limits of foundation resources

The funding debate is not occurring in a vacuum. On May 24, Ethereum co-founder Vitalik Buterin posted on X that the Ethereum Foundation’s available resources are limited—saying it holds only about 0.16% of Ether’s total supply. He contrasted that with foundations linked to other networks, which can hold a much larger share of their ecosystem’s supply.

Buterin said the Ethereum Foundation was originally designed for a narrower mission: developing Ethereum’s core software and helping the network move through major roadmap milestones, many of which he said were largely completed by 2022. With that in mind, he argued that the foundation now faces trade-offs about where to deploy remaining resources.

“And so today, the EF is choosing to use its remaining resources to pursue longevity over breadth (yes, this means we sell less ETH),” Buterin wrote.

That framing matters because it implies the foundation may increasingly prioritize sustained maintenance and long-horizon stability rather than broad, multi-program ecosystem support—an approach that can leave gaps if other funding sources do not fill the remainder.

Treasury adjustments: unstaking, sales, and a policy recalibration

The foundation’s funding position has been reflected in recent treasury activity. Cointelegraph reported that the Ethereum Foundation unstaked 17,000 ETH in late April, and then another 21,270 ETH in early May, at the time reported as worth $50 million. The foundation had nearly surpassed 70,000 ETH staked earlier in the year, according to the same reporting.

Cointelegraph also noted the foundation sold 10,000 ETH in an OTC deal on May 1 to Bitmine, described as the largest corporate ETH holder. Arkham, a blockchain analytics platform, suggested the unstaking may have been driven by the need for funds to continue developing the network.

These transactions represent another step in what Cointelegraph described as ongoing adjustments to the Ethereum Foundation’s treasury strategy. In a June 2025 policy update, the foundation said increasing its staking participation would help fund protocol development while limiting future ETH sales, following earlier community backlash over disposals.

Taken together, the funding warning from Van Epps and the foundation’s described treasury choices point to a structural tension: if the organization is trying to sell less ETH while also reducing operational spending and losing certain incentive programs, the ecosystem’s remaining funding capacity becomes harder to sustain—particularly during a period when maintenance needs continue regardless of roadmap milestones.

What to watch as the funding timeline tightens

For investors, builders, and client maintainers, the immediate question is whether Ethereum can secure stable, predictable support for core development within the next three to nine months—especially after the Client Incentive Program ended and as the foundation reshapes how it finances development through treasury policy. The next developments to monitor are any new funding commitments and how Ethereum’s core contributors adapt if annual support still fails to match the roughly $30 million level Van Epps described.

TLDR:

• Hsiao-Wei Wang resigns as Ethereum Foundation co-executive director, effective Thursday this week.
• Both co-executive director roles are now vacant after Tomasz Stańczak’s earlier departure.
• At least eight senior Ethereum Foundation members have exited the organization in five months.
• Board member Bastian Aue takes on interim executive director duties amid governance scrutiny.

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Hsiao-Wei Wang has stepped down as co-executive director and board member of the Ethereum Foundation, effective Thursday, becoming the latest senior figure to exit the nonprofit.

Her departure leaves both co-executive director seats vacant and places renewed focus on the organization’s leadership pipeline during a period of intense scrutiny.

Another Senior Exit Rattles the Foundation

Wang’s resignation follows closely behind that of fellow co-executive director Tomasz Stańczak, who stepped back after helping manage a leadership transition at the Switzerland-based organization.

With Stańczak already gone, Wang’s exit means the foundation has lost both individuals who had jointly held its top executive role.

Board member Bastian Aue has stepped into a larger leadership position as a result. Aue had already begun overseeing parts of the transition during Wang’s recent sabbatical, positioning him to take on interim executive director responsibilities now that both co-executive directors have departed.

Wang’s exit is not an isolated event. At least eight senior members have left the Ethereum Foundation within the past five months, a pattern that has drawn growing attention from developers and community members tracking the organization’s direction.

The repeated departures have fueled scrutiny over governance practices, spending decisions, and long-term strategic planning at the foundation.

This comes as Ethereum contends with intensifying competition from rival blockchain networks vying for developers, capital, and active users.

Wang and Buterin Address the Transition

Wang explained that her decision followed a sabbatical period that allowed her to reassess her priorities within the organization.

She took on the co-executive director position last year alongside Stańczak, describing the stretch as a demanding one for the foundation.

In her resignation statement, Wang said she had reached a clear conclusion after stepping away. “I’ve come to feel that this is the right moment for me to step back,” she wrote, signaling a personal rather than contentious departure.

Ethereum co-founder Vitalik Buterin responded by recognizing Wang’s decade-long contributions to the ecosystem.

He specifically highlighted her role in organizing the network’s research efforts and shaping its consensus-building processes over the years.

Buterin also credited Wang with helping build an active developer community in Taipei, an effort that expanded Ethereum’s reach beyond its more established hubs.

Wang closed her statement by describing Ethereum as resting on more than any single contributor. The network “has always been bigger than any one role, any one organization, or any one moment,” she wrote.

The foundation must now fill two co-executive director vacancies while managing continued community attention. Aue’s interim leadership will likely remain under close watch as the organization works toward longer-term stability.

The XRP Ledger community has reported a growing list of software issues after the June 15 release of xrpld version 3.2.0, even as only 26% of network nodes have upgraded to the new software.

According to reports published on the XRP Ledger project’s GitHub repository, developers and node operators have identified synchronization failures, configuration parsing problems, and several networking-related bugs following the rollout of the latest server software update.

The release introduced performance improvements, security enhancements, memory optimizations, and officially renamed the XRP Ledger server software from “rippled” to “xrpld.”

Several bugs have surfaced after the xrpld rollout

Among the most serious reports, a node operator stated on GitHub that a server running xrpld version 3.2.0 failed to synchronize with the XRP Ledger network.

According to the issue report, the server remained stuck in a “connected” state and did not download ledger data, while the same machine successfully synchronized when downgraded to version 3.1.3. The issue, submitted on June 18, remains open at the time of writing.

Elsewhere in the repository, another developer reported that configuration files containing inline comments could cause the server to crash during parsing. According to the report, the issue stemmed from the legacy configuration parser, which failed to properly strip comments in certain single-value fields and triggered a “BadLexicalCast” error.

GitHub records show additional bug reports filed within days of the release. Project maintainers have categorized several of them as confirmed bugs and assigned them for review. Reported issues include peer-to-peer communication behavior, message compression handling, resource charging rules, amendment processing, message parsing policies, and consensus-related routing logic.

While maintainers continue investigating those reports, the issues emerged shortly after community discussions highlighted expected memory reductions of 30% to 40% and other performance gains associated with the upgrade.

Developers identify networking and validation concerns

Beyond the synchronization and parser-related problems, XRP Ledger developers have documented several technical flaws affecting node operations and transaction propagation.

According to issue reports on GitHub, developers identified a transaction relay calculation problem that may cause transactions to be relayed to fewer peers than intended. Separate reports describe a resource charging mechanism that records only the highest fee observed while discarding earlier fee data.

Additional findings involve validator list distribution. According to developers, validator information is currently sent only to inbound peers, leaving outbound peers excluded from the process.

Several reports also focus on validation and consensus logic. Developers flagged a potential unsigned integer overflow risk during ledger sequence validation and documented inconsistencies involving transaction routing flags. Another issue report highlighted broken proposal node identifiers associated with ephemeral keys.

In ledger tracking systems, developers reported logic gaps that could leave nodes in an indeterminate state for extended periods. Some of those findings have already been classified as bugs, while others remain under review by project maintainers.

The XRP Ledger Foundation and project contributors continue to assess the reported issues through the network’s open-source development process. According to the current GitHub reports, none of the identified bugs have caused a network-wide outage or disruption, and investigations into the reported flaws remain ongoing.

Key Takeaways

• Jim Cramer suggests CoreWeave’s actual contracted revenue pipeline may surpass the disclosed $99.4 billion figure, referencing analysis of third-party debt filings.
• The company delivered $2.08 billion in Q1 2026 revenue, marking a 112% year-over-year increase, though net losses reached $740 million.
• Contracted backlog surged from $30.1 billion in Q2 2025 to nearly $100 billion by March 2026, fueled by major deals with Meta and OpenAI.
• Institutional heavyweights like Vanguard significantly expanded their stakes, even as the CEO and CFO executed stock sales through pre-established trading plans.
• The stock currently trades around $117.95, with Wall Street analysts setting an average price target of $131.52 and assigning a Moderate Buy rating.

---

During his June 16 Mad Money broadcast, Jim Cramer argued that CoreWeave (CRWV) may be sitting on more locked-in customer commitments than currently reflected in market expectations — and the upcoming quarterly report could validate his thesis.

CoreWeave, Inc. Class A Common Stock, CRWV

Cramer referenced analysis from a third-party research firm that examined CoreWeave’s debt documentation, indicating the $99.4 billion backlog revealed in Q1 2026 might understate actual commitments. “The backlog may be much greater when they report,” he noted.

CRWV began trading Friday at $117.95. Shares have climbed 49% since the start of the year, though they remain approximately 28% below their level from twelve months ago. The 52-week trading band spans from $63.80 to $187.00.

The $99.4 billion contracted backlog reported as of March 31, 2026 represents a substantial figure by any measure. This total includes a $21 billion agreement with Meta inked in March alongside approximately $22.4 billion in combined commitments from OpenAI. CEO Michael Intrator described it as “the strongest bookings quarter in CoreWeave’s history.”

The growth trajectory leading to this milestone is equally remarkable. The backlog measured $30.1 billion in Q2 2025, advanced to $55.6 billion in Q3, reached $66.8 billion in Q4, before vaulting to nearly $100 billion in the most recent quarter.

Should Cramer’s information prove accurate and the debt documentation reveals additional contracted obligations, the number announced during the next earnings release — tentatively scheduled for approximately August 13, 2026 — could show meaningful upward movement.

Cramer framed it plainly: “If you want to put a rocket into space with a data center… you might at least peruse CoreWeave’s work, because that’s the one that knows how to build them fast.”

Why Bulls Remain Optimistic

Revenue figures reinforce the rapid-deployment narrative. Q1 2026 sales reached $2.078 billion, representing a 112% year-over-year surge and exceeding analyst estimates by 6%. For the full 2025 calendar year, revenue totaled $5.131 billion, up 168% — positioning CoreWeave as the fastest cloud infrastructure provider in history to achieve $5 billion in annual sales.

The organization surpassed 1 GW of operational power capacity in Q1 2026 and maintains contracts for over 3.5 GW of power, with ambitions to exceed 8 GW by 2030. NVIDIA deployed $2 billion into Class A shares and established an $8.5 billion non-recourse delayed draw term loan facility. CoreWeave also earned designation as NVIDIA Exemplar Cloud for inference workloads utilizing GB200 NVL72 infrastructure.

Institutional ownership trends show growing conviction. Vanguard expanded its position by 275.6% during Q4 to 27.9 million shares valued at roughly $2 billion. Deutsche Bank increased its stake by more than 22,000%. Caitong International boosted holdings by 35.8%, elevating CRWV to its sixth-largest position at approximately $9.99 million.

Challenges and Warning Signs

The Q1 results also highlight why the optimistic narrative faces headwinds. CoreWeave recorded a $740 million net loss. Earnings per share landed at -$1.40, falling short of the -$1.20 consensus projection. Interest expenses doubled to $536 million, while capital expenditures consumed $7.695 billion in just one quarter. Total liabilities now measure $50.814 billion, producing a debt-to-equity ratio of 3.68.

CEO Michael Intrator divested 200,000 shares on June 16 at an average price of $116.65, generating $23.33 million in proceeds. CFO Nitin Agrawal sold 58,429 shares at $116.70 for $6.82 million. Both sales occurred through pre-established 10b5-1 trading arrangements.

A pending securities fraud class action lawsuit alleging undisclosed data center construction setbacks continues to linger.

Wall Street maintains a Moderate Buy consensus, derived from 20 Buy recommendations, 12 Hold ratings, and 2 Sell opinions. The mean price target stands at $131.52.

TLDR:

• Repo averages $12.6 trillion in daily U.S. exposures, the largest market V4 targets 
• Aave V4 uses hubs and spokes to isolate risk across asset categories and venues
• Lending agents currently keep 20-30% of revenue that could instead reach owners 
• Tokenized real-world assets are projected to reach $16 trillion in value by 2030 

---

Aave founder Stani Kulechov outlined a plan to bring securities finance on-chain using Aave V4. The proposal targets repo, securities-based lending, and securities lending markets.

These markets move tens of trillions of dollars through layers of intermediaries. Kulechov says Aave V4 can replace that stack with shared liquidity and transparent settlement.

Market Size And Current Structure

Securities finance covers some of the largest credit markets in traditional finance. Repo alone averages roughly $12.6 trillion in daily exposures across the United States.

Margin lending has reached a record $1.3 trillion, while wealth-management securities-based loans add more than $400 billion. Securities lending keeps about $4.6 trillion of assets on loan and generated $15 billion in revenue during 2025.

Almost none of this activity currently touches a blockchain. Kulechov described the layers sitting between borrowers and lenders, noting that “each layer of the stack takes a fee, adds a settlement delay, and obscures information.” Collateral often gets locked inside bilateral relationships with little visibility into how it moves.

Kulechov argues that onchain rails are already large enough to absorb this volume. The stablecoin market has crossed $322 billion in total supply.

Aave secures close to $23 billion in liquidity, and its native stablecoin GHO is live across the protocol. Aave Horizon, which supports real-world-asset-backed loans, has surpassed half a billion dollars in deposits.

How Aave V4 Organizes The Market

Aave V4 separates its system into liquidity hubs and spokes. A hub holds deep, shared capital, while spokes are modular venues with their own risk parameters and asset scope. This structure mirrors how securities financing already separates collateral pools from specific trading venues.

Three flows are proposed to run through this structure. Securities-backed lending lets owners post tokenized securities as collateral and borrow stablecoins or GHO without selling assets.

Repo becomes short-dated, collateralized cash borrowing against tokenized Treasuries, settled atomically rather than over one or two days.

Securities lending turns tokenized securities into borrowable assets, with fees routed directly to suppliers instead of intermediaries.

Kulechov called repo the largest opportunity in the proposal, writing that “the market that most needs clean settlement and live collateral visibility is the one V4 serves best.”

He proposed two structural options for organizing liquidity. One design uses a single shared hub for maximum depth and simplified accounting.

The other splits liquidity into multiple hubs by asset category and risk level, such as separate pools for Treasuries, credit instruments, and equities.

Roles And Settlement Changes

Under this model, traditional finance roles shift into protocol functions. Lending agents become risk managers tuning hub parameters.

Tri-party collateral managers become the protocol’s accounting and liquidation engine. Prime brokers and clearing houses become operators running permissioned venues, while custodial ledgers move onto the blockchain itself.

Settlement speed changes substantially under this structure. Securities in the United States currently settle one day after a trade, while European markets often take two days.

The recent industry shift to one-day settlement cost market participants close to $30 billion to implement, according to the proposal.

Kulechov summarized the broader shift in roles, stating that under this structure “the work survives while the rent does not.”

Lending agents currently keep roughly 20 to 30 percent of securities-lending revenue before asset owners receive any return, a share Aave V4 aims to route back to owners instead.

The proposal frames real-world asset tokenization as a growth driver for this system. Tokenized assets are projected to reach $16 trillion by 2030, expanding the pool of collateral available for onchain securities finance.

Aave Horizon’s existing deposit growth is cited as early evidence of institutional demand for this type of infrastructure.