Revolut, the London-based fintech giant, is reportedly in advanced stages of developing its own stablecoin. So we have yet another financial giant willing to operate its a new stablecoin.
Sources close to the matter have disclosed this information. The company, valued at $45 billion, recently acquired a UK banking license. It now appears set to expand its cryptocurrency offerings.
Revolut has been providing crypto trading services for years. In May, it launched a dedicated cryptocurrency exchange for experienced traders.
When questioned about its stablecoin plans, Revolut remained coy. A company spokesman stated their intention to expand crypto offerings.
"Crypto is a big part of our belief in banking without borders," the spokesman said. They emphasized a compliance-first approach.
Revolut aims to become "the safest and most accessible provider of crypto asset services". This goal aligns with their potential stablecoin launch.
The stablecoin market is currently dominated by Tether's USDT. It boasts a market cap of about $119 billion. Circle's USDC ranks second, with roughly a third of USDT's size. Other major players are entering the field.
PayPal launched its stablecoin last year. Ripple aims to join in the coming weeks. BitGo announced its plans at Token2049 in Singapore.
Stablecoins are highly profitable, and thus are an attractive business idea, there are no two ways around it. Their value is pegged to real-world assets, often government-issued debt.
This provides a steady stream of interest payments. Tether reported a first-half profit of $5.2 billion.
The trend may be partly driven by upcoming European regulations. The Markets in Crypto Assets (MiCA) framework is set to provide guidance on crypto-tokens.
Revolut's move into stablecoins could significantly impact the market. It would leverage the company's existing user base and financial clout.
The company's track record in disrupting traditional banking services suggests a potentially innovative approach to stablecoins.
As the crypto market evolves, Revolut's entry could reshape the competitive landscape. It may challenge established players and attract new users to the stablecoin ecosystem.