The European Banking Authority has floated a package of measures targeting stablecoin-based lending by EU crypto firms, including leverage caps on borrowing against stablecoin collateral and a potential certification regime for DeFi lending protocols acting as intermediaries. The proposals are at consultation stage but represent the EBA's first direct engagement with crypto lending leverage as a systemic risk vector under MiCA's broader framework.
For Armada's crypto-repo desk, EU-domiciled hedge funds, family offices, or market makers operating under EBA-supervised entities could face borrowing limits that reduce their capacity to enter into stablecoin-collateralized or crypto-collateralized repo. If leverage caps apply to exposures booked through DeFi gateways, counterparties using those rails for collateral movement or margin posting could be constrained. Armada should map its EU counterparty book against the proposed restrictions.