Ether.fi adds tokenized stocks and portfolio-backed borrowing

Ether.fi tokenized stocks loans are now part of the crypto platform’s expanded consumer app, according to The Block. The August 13 Summer update pairs trading in tokenized equities and metals with borrowing against a user’s portfolio, giving customers another way to access funds without first selling their holdings.

The practical limitation is availability. The Block reported that tokenized-stock trading will not be offered in the U.S. and some other markets, though it did not list every restricted jurisdiction.

What does Ether.fi’s Summer update add?

The new release combines tokenized stock and metal trading, portfolio borrowing through Aave, broader fiat-payment tools and ETHFI token buybacks in Ether.fi’s non-custodial app, The Block reported. Non-custodial means users retain control of their assets rather than placing them under the platform’s custody.

Users can buy tokenized equities and commodities through xStocks alongside crypto assets, according to the report. The assets can be held in self-custodial vaults with social recovery. The available reporting does not specify supported stock symbols or metals, product fees, or the full list of markets where trading is permitted.

Ether.fi’s own website already promotes a Cash card funded by crypto or bank transfers, as well as products for staking, vault-based strategies and borrowing to spend without selling assets. The site does not independently describe the Summer release, xStocks trading or the new Aave borrowing feature.

How does Ether.fi portfolio borrowing work?

The Block said the update offers borrowing against a user’s full portfolio through a new Optimism-based Aave market. Borrowed funds may be used for spending on the ether.fi Cash card or for other transfers.

The report put DeFi borrowing rates at around 4% at the time of publication. That is a snapshot, not a promised fixed rate. Ether.fi did not provide loan-to-value limits, eligible collateral, liquidation terms, interest-rate methodology or borrower requirements in the available reporting.

DeFi, short for decentralized finance, is a term for blockchain-based financial services such as borrowing, saving, investing and trading. Ethereum.org lists borrowing with collateral among DeFi’s uses and says Ethereum can support lending and borrowing services.

Why Ether.fi is expanding the app

Ether.fi said its redesign is “less crypto-forward” and intended to reach a broader audience, The Block reported. Chief Executive Mike Silagadze said the company’s goal is to connect decentralized finance with routine financial needs and ultimately replace a traditional bank for most users. That is the company’s stated ambition, not an outcome established by the launch.

The update also adds on- and off-ramps supporting more than 30 currencies and payment methods, including Apple Pay and Cash App, according to The Block. For users, the central takeaway is that access depends on location, while borrowing costs can change over time.

This story draws on original reporting from Decrypt.