According to a Coindesk article published on September 18, Revolut is getting ready to introduce its own stablecoin and set itself up to compete with established players in the market.
Source: Adobe Stock / 24K-Production
🚨 JUST IN: Crypto-friendly Revolut is said to be quite far along in creating its own stablecoin. pic.twitter.com/8pV48BpRyM
— Satoshi Club (@esatoshiclub) September 18, 2024
The London-based company is further expanding into the crypto market, joining firms like PayPal, Ripple, and BitGo.
Revolut Eyes Stablecoin Market Expansion
Future stablecoin from Revolut will join a quickly expanding market that has drawn interest from fintech and blockchain businesses.
Right now, Tether’s USDT, with a market cap of about $119 billion, and Circle’s USDC, with a market cap of about one-third of that amount, are the two leading stablecoins.
Following PayPal’s stablecoin launch last year and recent announcements from BitGo and Ripple about their own token plans, Revolut is entering this market.
Stablecoins are a profitable venture for businesses because of their real-world asset backing and interest payments.
Tether achieves its highest net profit of $5.2 billion in the first half of 2024 with highest treasury bill ownership and largest equity.#usdt #profit #tetherhttps://t.co/6aFfKlMzmN
— Cryptonews.com (@cryptonews) July 31, 2024
Tether, for example, posted a $5.2 billion profit in the first half of 2024. Revolut’s launch seeks to tap into this market by offering security and compliance for its users.
Revolut has been progressively expanding its market share within the digital asset industry.
The company added cryptocurrency trading to its app a few years ago, and in May it unveiled a stand-alone exchange tailored for seasoned investors.
These actions demonstrate its increasing clout in the cryptocurrency arena and its unwavering dedication to growing its portfolio of crypto services.
Regulatory Timing and New Ventures from Former Executives
Revolut’s stablecoin initiative comes as regulatory frameworks, particularly in Europe, are becoming clearer.
The upcoming Markets in Crypto Assets (MiCA) regulations are expected to provide better guidance on managing crypto tokens, which could help legitimize Revolut’s efforts in the space.
Revolut plans to expand internationally after securing a UK banking license in July and being valued at $45 billion.
In the meantime, Neverless, a commission-free cryptocurrency trading app with a passive investment option, was introduced by three former executives of Revolut.
Three Revolut former executives raised $6.7M to launch first ever ZERO FEES crypto platform, Neverless. The app also offers a passive yield product that returns 13% AER. Registered with the Bank of Spain.https://t.co/8UObfHqrVp pic.twitter.com/oC8M6xnOQX
— Neverless (@neverlessapp) August 13, 2024
Pre-seed funding for the startup has already raised $6.7 million, making it one of the biggest rounds in Europe.
In a sign of increased competition in the fintech sector, Neverless has registered as a Virtual Asset Service Provider (VASP) in a number of European nations.