Pendle Debuts PendleLoop for Tokenized Stocks on Base

Pendle Finance released PendleLoop on October 22, 2026, a one-click leveraged looping tool that for the first time reaches beyond crypto yield assets to tokenized US equities on the Base network, Cryptobriefing reported. Seven Coinbase-issued stock tokens are supported at launch, and access is restricted to eligible non-US individuals.

Key facts

• PendleLoop lets users post a stock token as collateral, borrow USDC through Aave V4, then convert the stablecoin back into the same stock token, according to Cryptobriefing.
• The supported tokens are AAPLc, AMZNc, GOOGLc, METAc, MSFTc, NVDAc and TSLAc.
• Leverage runs between 2.6x and 4.2x, with ceilings set per asset rather than uniformly.
• Pendle is waiving protocol fees on non-PT loops, which covers the stock-token loops, through December 31, 2026.
• Separately, Watcher.guru reported that trading venue BaiBai launched two Coinbase and LI.FI-backed campaigns for Coinbase Tokenized Stocks on Base: up to $10 in USDC cashback per wallet and a four-week volume competition with a pool reaching as high as $30,000, both paid in USDC via Merkl.

How the loop works and where the ceiling comes from

The mechanism depends on Aave V4. On that lending market, these stock tokens behave as collateral-only assets: holders can pledge them to borrow against, but cannot be borrowed themselves. That constraint is what makes the routing possible, and it means the leverage ceiling differs from one stock to the next, so a looped position in one equity will not mirror a looped position in another.

PendleLoop did not begin with equities. The tool first ran as a beta built around principal tokens, the instruments Pendle creates when it splits a yield-bearing asset into a principal token representing the asset and a separate yield token carrying its income. The stock tokens sit in the non-PT category, which is why the fee holiday applies to them.

From a Coinbase listing to seven names in about a week

The launch rests on infrastructure Coinbase built earlier. Coinbase Tokenized Stocks went live on Base in August 2026, putting equity-backed tokens on the network with continuous trading in a DeFi setting. Pendle then added GOOGLc and NVDAc as yield markets on Base in mid-October 2026, backing each pool with $20K USDC in liquidity provider incentives. Roughly a week later, the protocol extended looping across seven names.

Watcher.guru reported that BaiBai, the trading venue built with infrastructure support from Spire Labs, is running its own incentive stack for the same assets. The cashback campaign pays $5 on a first Coinbase Tokenized Stock purchase above $250, provided the purchase is made with an asset other than a Coinbase Tokenized Stock such as USDC or ETH, and another $5 after completing $1,000 in stock-to-stock trades. It runs in two-week epochs with $15,000 allocated per epoch and can be renewed once. The competition has no holding requirement and scales as volume on BaiBai rises, adding $1,875 for every $2.5 million of volume and reaching a $7,500 pool at $10 million, then $7,500 more per additional $10 million up to a ceiling of $30,000 at $40 million in total volume. Neither outlet reported terms that conflict with the other.

Why it matters

Leverage is symmetric. At 4.2x, a moderate drop in the underlying equity produces a far larger loss in the looped position, and the position can be liquidated if collateral values fall far enough. Tokenized stocks also trade continuously while the equity markets they track do not, so prices can move abruptly when traditional exchanges reopen, and leveraged holders are typically exposed first. Once the waiver lifts after December 31, 2026, users will carry borrowing costs and protocol fees on top of their equity exposure. The back-to-back Pendle and BaiBai launches show the tokenized-equity segment on Base is drawing product builders quickly after Coinbase’s August rollout.

What to watch

The December 31, 2026 expiry of Pendle’s fee waiver is the clearest near-term marker, since it will reset the economics of these loops. How the per-asset leverage ceilings hold up under volatile sessions, and whether BaiBai’s volume competition reaches its $40 million ceiling, are the other measurable points to track.

This article is not financial advice. Leveraged positions in tokenized equities carry substantial risk, and markets are volatile and uncertain.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: Crypto Briefing, Watcher.guru