Fintech Giant Revolut Said to Be Planning Stablecoin

Revolut, a leading London-based fintech firm, is advancing plans to issue its own stablecoin, according to insiders familiar with the development. This move aligns with Revolut’s broader strategy to expand its crypto services while maintaining a strong focus on regulatory compliance. The company, which obtained a U.K. banking license in July and is valued at $45 billion, aims to create a stable and accessible cryptocurrency platform. Revolut has offered crypto trading through its app for several years, launching a dedicated cryptocurrency exchange in May 2023.

The booming stablecoin sector is currently dominated by Tether’s USDT, with a market capitalization of $119 billion, and Circle’s USDC, which follows in second place. Recently, other major players like PayPal and Ripple have entered the stablecoin space, adding to the growing competition. Stablecoins are tied to real-world assets and typically invest in government debt, generating substantial profits, as seen with Tether’s reported profit of $5.2 billion in the first half of 2023.

This trend is being bolstered by new regulatory frameworks in Europe, specifically the Markets in Crypto Assets (MiCA) regulations, which are expected to shape the future of cryptocurrency governance. Revolut’s entry into the stablecoin market would position it among key players benefiting from the rising demand for secure, regulated crypto-assets.

Revolut’s spokesperson emphasized the company’s belief in “banking without borders,” reinforcing their commitment to being the most secure and accessible provider of crypto asset services in the market.