Aave has launched Mica-Conforme EURC Stablecoin on the base, allowing users to use it as collateral for loans and borrowing.
The decentralized Credit and Leen Platform Aave (AAVE) has launched Circle’s EURC (EURC) Stablecoin on Basic Layer 2 Blockchain. With EURC on the Aave basic market, users can now borrow EURC or use it as collateral to take out other loans on the platform. This addition is expanding the options for AAVE users to borrow and use their assets beyond USD-Pegged Stablecoins that are available on the platform, namely USD Coin (USDC), DAI (DAI) and Tether (USDT). .
This development represents part of the growing trend in which the loans and borrow Defi platforms expand their offer over Dollar-Pegged Stablecoins. Last year the Defi protocols liquid and Moonwell also activated a market for EURC based.
It is also part of the growing trend where crypto-service providers endeavor to integrate more mica-compliant stablecoins and remove non-compliant deletion after the mica regulation was in force. For example, in order to guarantee compliance with MICA regulations, Binance recently announced that it would delete nine stablecoins, including USDT and DAI for users in the European Economic Environment. Similarly, Coinbase has removed non-compliant stablecoins, including Tether, and encouraged customers to switch to in accordance with USDC and EURC.
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Mica -compliance ensures that Stablecoins and other crypto assets adhere to strict European Union instructions. In particular, it requires that EXPENTEN has a permit and are registered in the EU, regularly announce their reserves and undergo audits to prevent fraud and mismanagement. Consumers are given the legal right to avert Stablecoins 1: 1 for Fiat currency, whereby emptents are obliged to maintain fully supported reserves in secure, low risk assets. The European Banking Authority and National Regulators supervise compliance, with the authority to prohibit and intervene non-compliant Stablecoins in cases of financial instability. Circle, who publishes EURC and USDC, became the first Stablecoin emittent who received a permit from Mica, with effect from 1 July.
Breaking News: @Circle announces that USDC and EURC are now available under new EU Stablecoin laws; Circle is the first Global Stablecoin emittent to meet Mica. Circle now publishes both USDC and EURC to European customers on July 1.
Details … pic.twitter.com/isnbumoi3e
– Jeremy Allaire – JDA.eth / Jdallaire.sol (@jerallaire) July 1, 2024
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