London-based neobank Revolut is reportedly exploring the issuance of its own stablecoin, a move that could significantly bolster its presence in the cryptocurrency market. Sources close to the matter indicate that Revolut is in discussions with at least one crypto-native company regarding this initiative.
This exploration comes at a time when regulatory environments for stablecoins are evolving globally, prompting an increasing number of non-crypto companies to consider issuing their own digital currencies pegged to fiat assets. The recent passage of legislation like the U.S. Senate's GENIUS Act, which aims to provide a legal framework for stablecoin issuance, is seen as a catalyst for this trend. Major financial institutions are also reportedly looking into stablecoin ventures, signaling a broader acceptance and integration of these digital assets into the financial system.
Revolut, a prominent player in the fintech space, currently boasts a substantial global reach, serving over 55 million retail customers and 500,000 business clients across 160 countries. The company has a history of embracing crypto, offering various cryptocurrency trading services within its app and launching Revolut X, a centralized crypto exchange in the European Union.
While Revolut has not officially commented on its stablecoin plans, a spokesperson emphasized the company's commitment to the crypto sector, stating a mission to become a "trusted and accessible provider of crypto asset services." The potential launch of a Revolut stablecoin would place it alongside other companies like PayPal, Ripple, and BitGo who have also entered or are planning to enter the stablecoin market.
The move could provide Revolut with several advantages, including potentially reducing payment processing fees, improving settlement speeds, and earning yield on the collateral backing the stablecoin supply, similar to how current market leaders like Tether and Circle operate. However, any such stablecoin would need to navigate complex regulatory landscapes, particularly in regions like the EU with its Markets in Crypto-Assets (MiCA) regulation, which imposes stringent requirements on stablecoins.
