Two United Kingdom subsidiaries of Aave Labs have secured registration from the Financial Conduct Authority (FCA) as cryptoasset exchange providers, clearing the way for the decentralized finance firm to run regulated operations and build a compliant payments framework in the country.
Push Labs Ltd. and Push Virtual Assets Ltd., which operate together under the brand Push, are now registered under the U.K.’s anti-money laundering regime and also hold authorization under the Electronic Money Regulations 2011. The dual status lets the entities both issue electronic money and operate a registered cryptoasset exchange, creating a regulated bridge between fiat currency and digital assets.
Zero-fee fiat-to-crypto conversion inside the app
With these approvals, the company plans to offer a zero-fee conversion system between traditional currency and crypto directly within its application. Users would be able to move funds between bank accounts and digital wallets without relying on external payment processors.
The firm says this setup is designed to form the backbone of its fiat-to-crypto payment infrastructure in the U.K., and to reduce friction and costs for those moving money onchain.
Founder Stani Kulechov said the combination of existing e-money authorization and new FCA registrations gives the company a base to develop regulated onchain payment services in Britain. The model is meant to link traditional money flows with onchain financial applications in a single, compliant framework.
Part of a wider European regulatory strategy
The U.K. approvals follow earlier steps on the continent. In November 2025, Push Virtual Assets Ireland Ltd., the firm’s Irish unit, obtained a Markets in Crypto-Assets (MiCA) license from the Central Bank of Ireland. That license permits the group to operate across the European Economic Area under the new EU-wide crypto regime.
Together, the U.K. and Irish authorizations position the company to serve two major regulatory blocs ahead of the full rollout of their respective digital asset frameworks, giving it time to scale services while rivals continue to navigate the licensing process.
Impact on liquidity, GHO stablecoin and Aave V4
The protocol underlying Aave is already among the largest onchain credit markets by total value locked, maintaining a leading share of deposits and lending in decentralized finance.
Connecting a regulated e-money framework directly to a registered exchange creates a compliant route for British pounds to reach the protocol, potentially boosting liquidity. A direct, cost-free gateway from bank accounts into the protocol could expand the pool of capital available for borrowing and lending and deepen market activity.
This infrastructure is also expected to support the GHO stablecoin, which recently passed a market capitalization of around $580 million. The ability to acquire GHO using traditional currency at zero cost within a regulated environment may encourage wider use in the U.K.
Attention within the ecosystem is also on the upcoming Aave V4 upgrade, described as a major architectural overhaul focused on modularity and efficiency. Planned features include a unified liquidity layer and dynamic risk parameters that adjust borrowing costs based on collateral quality, changes that could reshape how rates are set across different assets.
In April, the Aave DAO approved a $25 million funding grant to Aave Labs to support ongoing development and rollout plans, including Aave V4 and further GHO expansion. Both initiatives are framed as key steps toward regulated, consumer-facing financial products.
FCA’s evolving crypto framework
The FCA is still building out its broader licensing regime for digital assets. A consultation launched in April sought industry input on standards for stablecoin issuance, custody, and trading. A formal licensing gateway is expected to open in September 2026, with the full digital asset framework due in October 2027.
Firms already holding registrations under the existing anti-money laundering rules, including Aave Labs’ U.K. entities, will still need to apply for permissions under the new regime. However, early compliance and dual e-money and crypto registrations provide an operational head start and signal alignment with regulatory expectations, factors that may ease the transition to full authorization once the FCA’s future rules take effect.
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