Financial technology giant Revolut has been making frequent moves after obtaining a British banking license in July. It has recently announced that it will enter the stablecoin market to compete with Tether, Circle, PayPal, Ripple and BitGo. Although Revolut has always maintained an extremely crypto-friendly attitude, its move into the stablecoin business is still surprising.
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ToggleObtaining a banking license becomes Revolut’s biggest advantage in developing stablecoins
According to reports , Revolut obtained a banking license in July this year, and there are rumors that it will soon launch a stablecoin business. When asked about its stablecoin plans, a Revolut spokesperson said the company hopes to expand its cryptocurrency offerings, take a compliance-first approach and become a safe haven for the entire cryptocurrency community.
Cryptocurrency is an important part of our belief in borderless banking, and we have a clear mission to be the safest and most accessible provider of crypto-asset services.
Revolut has always been crypto-friendly though, letting users buy and sell cryptocurrencies within its app and launching a cryptocurrency exchange service for experienced traders in May this year .
The stablecoin market is facing carving up, with many institutions entering the market
The stablecoin industry is dominated by Tether's USDT, with a market value of approximately US$119 billion. Circle’s USDC ranks second at about one-third the size. Payment service PayPal began issuing stablecoins last year, and blockchain company Ripple plans to join in the next few weeks . BitGo announced the launch of stablecoin services at Token2049 in Singapore earlier this week and will go online in 2025.
Tether's profits in the first half of the year alone were as high as US$5.2 billion, and many challengers began to try to carve up the market. However, things are not that easy. Taking the European market as an example, the MiCA regulatory framework has tightened the rules for giants like Tether that do not have a banking license. From June 30, 2024, MiCA stipulates that only electronic money institutions (EMIs) and credit institutions (such as banks) can issue and provide stablecoin services within the European Economic Area (EEA).
On the other hand, the United Kingdom, where Revolut is headquartered, has also been very keen on central bank digital currency CBDC recently. Optimistically, this shows that the current Labor government should remain open to blockchain applications. Revolut is also the favorite of many international students when they study in Europe. Its convenient spot currency exchange function and full online account opening make it a must-have when living in Europe. Perhaps we can see more people using cryptocurrencies to achieve more convenient cross-border financial services in the near future.
