Aave – the sector leading lending protocol – has confirmed that Aave’s UK business entity received an Electronic Money Institution license (EMI) last month.
Aave’s UK entity responsible for integrations and support, Aave Limited, is now licensed as an authorised electronic money institution. After a lengthy application process, the authorisation was granted in July by the Financial Conduct Authority (FCA). https://t.co/iLNxvkyvSn https://t.co/FUSP44TZob pic.twitter.com/ZtEo7Z2fG3
— Aave (@AaveAave) August 24, 2020
The license, granted by the UK Financial Conduct Authority (FCA), will enable Aave to provide payment services and issue “digital cash alternatives” – ultimately opening the door fiat onboarding capabilities within the UK.
The only other two companies to hold the license are Coinbase and Revolut, putting Aave among prestigious company within the cryptocurrency space.
Aave founder Stani Kulechov says that the application for the license was made back in 2018 in an effort to assist users on-board into DeFi via payment accounts. The license formally passed this summer, giving Aave the opportunity to bake in fiat onramps to their leading lending protocol this Fall.
Why Should I Care?
Aave is planning to use the EMI license to pilot a new onboarding service in the UK, providing users a way to acquire stablecoins and other crypto assets from fiat to be directly used within the Aave ecosystem.
The service will eventually expand out into the wider European Economic Area (EEA), and then globally.
Aave also plans to pursue further licenses to assist with onboarding capability, “until the ecosystem reaches wide adoption.” Aave is one of the most rapidly-growing DeFi protocols of 2020, with $1.4 billion in total value locked as of today according to Defipulse.com. This places it as the leading protocol in the ecosystem, just today displacing the sector giant Maker.
@AaveAave reached the top of the DeFi mountain 🗻 Big thanks to all the developers building innovation with the Aave Protocol (can’t wait to unleash the v2). Would never expected this to happen, but glad it did. 😍🙌🥳 pic.twitter.com/LwOhqlZfJ8
— stani.eth 👻 (@StaniKulechov) August 25, 2020
The announcement of fiat onramps comes shortly after the project showcased their Aave V2 upgrade, featuring gas optimizations and a suite of features geared at pushing DeFi composability to its limits.
We recently covered Aave and their first unsecured line of credit with DeversiFi, as well as their partnership with Opium Protocol to hedge that loan through DeFi’s first Credit Default Swap.
Aave will soon undergo it’s migration from LEND to AAVE via a Genesis Governance poll, kickstarting a series of safety and ecosystem incentives for those who help secure and grow the protocol.
If nothing else, Aave has continued to exceed expectations for all DeFi power users. To quote CT, when someone asked how much LEND you have, the correct answer appears to be “Never Enough”.
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