Aave Freezes New tBTC Supply and Borrowing After Mint-and-Redeem Pause

Aave froze new tBTC supply and borrowing in its Ethereum Core market after Threshold temporarily paused tBTC minting and redemptions. Existing positions remain active, but no new tBTC can be supplied or borrowed until the pause is resolved. The move limits Aave’s exposure to a wrapped Bitcoin asset whose issuance and redemption mechanics were temporarily halted. tBTC is issued by Threshold Network and used as collateral and borrowable liquidity in Aave’s Ethereum Core market. Traders should watch for Threshold’s restoration of mint-and-redeem functionality and any subsequent Aave governance action to unfreeze the market.