Aave Limited was issued an Electronic Money Institution license in July, LEND price surged higher
Non-custodial lending and borrowing protocol Aave Limited U.K. business entity has been issued an Electronic Money Institution (EMI) license. Meanwhile, the Aave (LEND) price surged higher on Monday as the rest of the cryptocurrency market inched higher. As of press time, LEND is trading 30% higher than it was just 24 hours ago, setting a new all-time high around $0.75. With this, the asset has entered the top-25 cryptocurrencies by market capitalization. While it was once almost this high before, having surged during the 2017 crypto-mania, this time the rally is predicated on fundamentals.
Aave’s U.K. business entity, Aave Limited, was issued an Electronic Money Institution license in July
Aave Limited was granted approval on July 7 by the U.K. Financial Conduct Authority (FCA), which issued the authorization. Such an authorization allows the recipient to offer services such as issuing digital cash alternatives and providing payment services.
According to founder and CEO Stani Kulechov, the application for the authorization was first submitted in 2018:
“The objective was to help Aave Ecosystem to access payment accounts and onboard users into DeFi. Electronic Money Institution is the same authorization that Coinbase and Revolut have in Europe. It will mostly support on-boarding new users into the Aave Ecosystem and to the decentralized protocol over time.”
Given that the entity is based in the U.K., a pilot for its specific services will start in that country. Aave Limited has its own dedicated website and is headquartered in London.
Kulechov stated:
“Aave will pilot in the U.K., before rolling out to cover the whole EEA and expanding globally. Specifically, the service will allow users to go from Fiat to stablecoins and other assets natively in the Aave Ecosystem and then use these assets in the Aave Protocol.”
When asked whether Aave will seek additional licensure within Europe, Kulechov said:
“The Aave Protocol itself is decentralized and shall be governed by the AaveDAO, however, Aave integration entity will seek additional licenses to help to onboard newcomers into the Aave Ecosystem until the ecosystem reaches wide adoption.”
After this announcement, the price of LEND, the token of the Aave ecosystem, increased sharply. The spike in buying pressure pushed the LEND price to a new all-time high of more than $ 0.77
Besides, LEND entered the top 25 today after the announcement. Kelvin Koh, a partner at The Spartan Group, says that Aave is only the first of many crypto assets related to DeFi that will enter the top 25.
He explained after the cryptocurrency accomplished that feat:
“A few weeks ago I suggested one of the DeFi tokens will get into the Top 25 on CMC before yearend. $LEND is the first to do this. I expect to see at least half a dozen more DeFi tokens achieve this feat before this cycle is over.”
A few weeks ago I suggested one of the DeFi tokens will get into the Top 25 on CMC before yearend.$LEND is the first to do this. I expect to see at least half a dozen more DeFi tokens achieve this feat before this cycle is over.
— SpartanBlack (@SpartanBlack_1) August 25, 2020
Others closely linked to DeFi have touted this opinion. They say that many of the existing coins in the top 25 have little value. They often cite Bitcoin forks that don’t have much economic activity or ghost smart contract blockchains that don’t facilitate much value, assets, or smart contracts/decentralized applications.
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