Revolut wants to expand its crypto services by being legal first to become a safe haven for the entire crypto community.
Revolut is planning to release its own stablecoin
According to multiple sources circulating, London-based fintech platform Revolut is planning to release its own stablecoin .
When asked about the stablecoin issuance plan, an unnamed representative of Revolut said that this is a plan to expand crypto services, while still ensuring legal compliance, to become a safe haven for the entire crypto community.
COINDESK: Fintech Giant Revolut Said to Be Planning Stablecoin https://t.co/kkkAMI99lY
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Revolut, which has around 45 million customers globally, was granted a banking license in the UK in July, and is XEM one of Europe's most valuable fintech companies with a valuation of up to $45 billion through a recent share sale.
Revolut started incorporating crypto into its service system since 2017. At first, they only provided crypto trading services, gradually allowing customers to transfer assets to other wallets and platforms from 2021.
Revolut's move to launch its own stablecoin is aimed at entering the potentially lucrative stablecoin space, currently dominated by Tether 's USDT, which has a market Capital of around $119 billion and a 75% market share . It is followed by Circle 's USDC , which is about a third the size of USDT.
Not only Revolut, some companies also quickly "jumped" into this "lucrative" piece of cake, such as PayPal with stablecoin PYUSD , Ripple is launching a trial stablecoin RLUSD , and BitGo introduced stablecoin USDS at the TOKEN2049 event with the special feature of rewarding participants.
These stablecoins have their value Peg to a real-world asset, often buying government-issued financial debt to back their value. This provides a steady stream of interest payments to companies, making them extremely profitable. Tether reported profits of $5.2 billion in the first half of 2024.
This trend may be partly driven by upcoming crypto- Token regulations from Europe, in the form of MiCA – a comprehensive and unified crypto legal framework among members in the region. Within the regulatory framework, MiCA also sets out a series of conditions for the issuance of stablecoins in Europe.
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