Revolut is preparing to launch its own stablecoin to compete with major players in the market, according to a Sept. 18 Coindesk report. The London-based company is further expanding into the cryptocurrency market, joining companies such as PayPal, Ripple and BitGo.
Revolut’s upcoming stablecoin will enter a fast-growing sector that has attracted significant interest from fintech and blockchain companies. The stablecoin market is currently dominated by USDT Tether, which has a market capitalization of about $119 billion, and USDC Circle, which has about a third of that size.
Revolut’s entry into this market follows the launch of PayPal ‘s stablecoin last year and recent announcements by Ripple and BitGo regarding their own token plans. The cost-effectiveness of stablecoin, driven by real assets and interest payments, has made it an attractive venture for companies.
Tether, for example, reported $5.2 billion in profit in the first half of 2024. Revolut’s launch aims to enter this market by providing security and compliance for its users.
Revolut has been steadily building its presence in the digital asset space. A few years ago, the company integrated cryptocurrency trading into its app, and in May it launched a standalone cryptocurrency exchange designed for experienced traders.
These moves further underscore its growing influence in the cryptocurrency space and its continued focus on expanding cryptocurrency services. Revolut’s stablecoin initiative comes at a time when the regulatory framework, particularly in Europe, is becoming clearer.
Upcoming regulations on crypto asset markets (MiCA) are expected to provide better guidance on crypto token management, which could help justify Revolut’s efforts in this space.
With a $45 billion valuation and a UK banking license secured in July, Revolut is poised to scale its operations globally. Meanwhile, three former Revolut executives have launched Neverless, a commission-free cryptocurrency trading app with a passive investment option.
The startup has already raised $6.7 million in pre-seed funding, marking one of the largest rounds in this category in Europe. Neverless has registered as a Virtual Asset Service Provider (VASP) in several European countries, which promises further competition in the fintech space.
