Aave has integrated Circle’s EURC stablecoin on the Base layer-2 blockchain, enhancing its lending platform with new borrowing and collateral options.
Users can now borrow EURC or use it as collateral, marking a shift from traditional USD-pegged stablecoins like USDC, DAI, and USDT. The move aligns with a broader trend among DeFi platforms, which increasingly integrate euro-backed stablecoins. Fluid and Moonwell, for instance, activated EURC markets on Base last year, highlighting the growing adoption of non-dollar-denominated digital assets in decentralized finance.
The platform’s addition of EURC reflects a shift in the crypto industry toward compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations. Since MiCA came into effect, major crypto platforms have been adjusting their offerings to comply with the new rules. Binance, for example, recently announced the delisting of nine stablecoins, including USDT and DAI, for users in the European Economic Area. Similarly, Coinbase removed non-compliant stablecoins such as USDT, urging users to transition to regulatory-approved alternatives like EURC and USDC.
MiCA compliance requires stablecoin issuers to be registered and licensed in the EU, maintain fully backed reserves in secure assets, and conduct transparent audits. Consumers can redeem stablecoins 1:1 for fiat currency, ensuring financial stability and investor protection. The European Banking Authority and national regulators oversee compliance and can ban non-compliant assets.
OKX has received one of the first MiCA licenses, allowing it to extend its services to 28 European Economic Area (EEA) countries. This regulatory approval, which follows OKX’s receipt of the MiCA license on January 27, enables OKX to offer fully regulated, localized cryptocurrency products and services to over 400 million people across Europe.
Circle, the issuer of EURC and USDC, became the first stablecoin provider licensed under MiCA, with its approval taking effect on July 1. As regulatory frameworks solidify, more DeFi platforms are expected to follow Aave’s lead in integrating compliant stablecoins to align with evolving market demands.
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