Revolut is set to launch its own stablecoin, leveraging its new UK banking license and a $45B valuation to expand into crypto trading.
UK-based financial technology company and payment app Revolut is planning to enter the stablecoin market as it has recently acquired a UK banking license and has a substantial valuation of $45 billion set earlier this year.
The company incorporated a cryptocurrency trading feature in its application and recently launched an exchange for advanced traders earlier this year. Revolut’s decision aligns it with traditional payment giants like PayPal and emerging blockchain firms like Ripple and BitGo in the stablecoin market.
Participation of Revolut in the world of stablecoins reflects a common trend in financial technology companies to seek new means that could guarantee high profitability of digital assets backed up by real-world equivalents, including government securities or other government-regulated financial assets.
Additionally, the inclusion of stablecoins such as Tether’s USDT and Circle’s USDC, which account for more than 95% of the market capitalization of all stablecoins, presents a double benefit of stability and an element of value appreciation. For instance, Tether revealed that it recorded a first-half profit of $5. 2 billion in 2024, demonstrating that these cryptocurrencies are very profitable.
Revolut’s Compliance in Stablecoin Market
Revolut strategy to increase its range of cryptocurrencies based on compliance and security, and the company’s goal to become a reliable participant in the crypto market. However, the spokesperson of Revolut stressed that the company remains committed to compliance, meaning that its stablecoin project would follow the global legislation, particularly the forthcoming MiCA from the European Union.
This regulation is anticipated to give clearer structure on managing and issuing new tokens and therefore contributes to the legitimacy and stability of new entries such as Revolut’s stablecoin.
There are a lot of changes in the stablecoins market and there is a large number of interest in offering their services, both in the field of fintech and blockchain. The expansion of the services offered by Revolut also contributes to the diversification of services and products within the company and the growth of competition in the field of stablecoin issuers, both new and existing ones.
Revolute’s Stablecoin Launch in Shifting Regulatory Environment
According to the firm’s strategy, Revolut plans to occupy a large segment of this growing market by using its developed presence in the world of digital currencies and the achieved consumer base.
Revolut plans to launch stablecoins, particularly in the midst of global regulatory stabilization due to increasing crypto interest. With a strong average valuation and regulatory orientations, Revolut can influence market changes and develop innovations in the stablecoin segment. The stablecoins could target a diverse population seeking diversification in their portfolios, including stable cryptos for long-term goals and risk management.
