Aave's native GHO stablecoin launches in Ireland under MiCAR regime

Aave Labs on Thursday launched zero-fee on and off-ramping for Aave’s native stablecoin, GHO, and other stablecoins across its various products in Europe. The firm aims to make the transition from cash to DeFi a seamless experience across the Aave ecosystem in the near future.

Aave revealed that the initiative was made possible by its subsidiary, Push, receiving authorization as a Crypto-Asset Service Provider (CASP) under MiCA from the Central Bank of Ireland. The firm said the authorization makes it one of the first DeFi innovators in Europe to operate under the new regulatory framework.

Aave chooses Ireland as the anchor for its EEA operations

Aave Labs is launching zero-fee on and off-ramping for @GHO and other stablecoins in Europe across Aave's various products.

Cash to DeFi will soon be a frictionless experience across the Aave ecosystem. pic.twitter.com/5rgQ4Orny4

— Aave (@aave) November 13, 2025

The crypto platform stated that MiCAR regulation allows Push to provide regulated and secure on- and off-ramping of stablecoins at no cost. The initiative goes against fintech companies and centralized exchanges that typically charge notable spreads or processing fees.

Aave added that the authorization will enable users to move easily between euros and digital assets under a new standard for consumer protection and transparency. The firm stated that it selected Ireland as the anchor for its European Economic Area (EEA) operations.

Aave also emphasized that the Aave Protocol remains permissionless and decentralized, operating globally on public blockchains. The firm also confirmed that the MiCA authorization applies only to its regulated service offering, provided by Push for fee-free stablecoin on-and-off ramping.

On-chain data revealed that Aave’s ecosystem continues to generate significant activity, processing over $542 million in volume within the past 24 hours. Users on the network also currently hold more than $22.8 billion in borrowed assets across its lending protocol.

Aave’s initiative comes as stablecoins and tokenized digital assets gain more mainstream traction. On-chain data indicate that the global stablecoin supply already exceeded $300 billion by 2025. 

At the time of publication, the total stablecoin supply had reached $305 billion. Tether’s USDT accounted for the largest share of stablecoin supply, with around $184 billion, while Circle’s USDC followed with $75 billion.

BOE’s Breeden warns stablecoin dilution risks damaging UK’s financial system

Although Aave is championing a cost-free offramping of stablecoins, the European Systemic Risk Board (ESRB) on Wednesday said the bloc’s existing rules already contain safeguards against risks posed by stablecoins. The remarks followed the European Central Bank’s warning that stablecoins pose a threat to financial stability.

The ESRB, chaired by ECB President Christine Lagarde, and the European Central Bank urged the European Union to ban the multi-issuance model. The initiative could alter the way global stablecoin issuers treat tokens in the EU, treating them as interchangeable with those outside the bloc. The ESRB argued that a rush by non-EU holders to redeem EU-issued tokens could amplify runs within the bloc.

A spokesperson for the Paris-based European Banking Authority said the ESRB’s concerns reflect the inherent risks posed by potential large withdrawal requests. The spokesperson said the severity of the risks depends on a token’s business model and scale.

The EBA revealed that it’s awaiting clarification from Brussels on whether multi-issuance is allowed under the EU’s MiCA. Stablecoin issuers acknowledged that they hold dollar-based reserves to enable redemptions.

“From a liquidity point of view, issuers need to hold an amount of liquid assets to meet potential redemption requests. And this should work at a global level.”

-Luis del Olmo, Senior Expert at the European Banking Authority.

Bank of England Deputy Governor Sarah Breeden also warned that further diluting rules for stablecoins risked endangering financial stability. She also believes it will cause a credit crunch, adding that the UK needs a different approach to the U.S.

Sarah’s remarks followed the BOE’s Monday report on new rules for systemic stablecoins used for payments. The central bank has set a limit of £20,000 ($26,840) per person for stablecoin holdings, while stablecoin issuers are required to hold 40% of the assets backing the tokens with the central bank as collateral for remuneration.

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