Quick take:
- The London-headquartered neobank was recently issued with a UK banking licence.
- With its stablecoin launch, Revolut will be joining the likes of PayPal and Ripple, which have already launched their products.
- The stablecoin market has grown to a market cap of over $171 billion, with Tether’s USDT dominating with $119 billion.
UK fintech giant Revolut is reportedly about to join the burgeoning stablecoin market according to people familiar with the matter. The London, UK-headquartered neobank has already made significant progress in creating its own stablecoin according to a report by CoinDesk.
A company spokesman said Revolut is taking a compliance-first approach to its expanded product offering as it builds a safe harbour for the entire crypto community.
This report comes just weeks after Revolut secured a UK banking license following three years of regulatory approval process.
Ranked by Forbes as the third biggest fintech company by valuation with $33 billion in 2024, Revolut’s expansion plans will see it join one of the fastest-growing crypto segments.
The stablecoin market has been attracting different players over the past few years including mainstream financial services companies like PayPal and crypto company Ripple.
As of this writing, the segment had a market value of just under $172 billion with Tether’s USDT continuing its dominance with a floating supply of $119 billion.
Commenting on his company’s decision to join the stablecoin race, the spokesman said: “Crypto is a big part of our belief in banking without borders and we have a clear mission to become the safest and most accessible provider of crypto asset services.”
Stablecoins are pegged to fiat currencies, with the equivalent of the circulating supply secured with real-world assets like government-issued securities. They have become one of the easiest ways of onboarding the non-crypto native community to the industry.
On Tuesday, Circle announced the integration of the USDC stablecoin with local banks in Mexico and Brazil, paving the way for businesses to directly acquire digital currencies through national payment rails.
Earlier in the week, a UK high court ruled Tether’s USDT stablecoin counts as property following the government’s new classification for property that specifically covers cryptocurrencies.
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