London-based fintech powerhouse Revolut, renowned for its cryptocurrency trading services, is reportedly gearing up to launch its own stablecoin. According to sources cited by Coindesk, Revolut, which secured a U.K. banking license in July and reached a valuation of $45 billion earlier this year, is making significant progress on the project. While Revolut declined to comment directly on the stablecoin initiative, a spokesperson highlighted the company’s broader vision for strengthening its cryptocurrency offerings while maintaining a steadfast commitment to compliance.
The spokesperson emphasized Revolut’s mission, stating, “Crypto is a fundamental part of our belief in banking without borders, and we are dedicated to becoming the safest and most accessible provider of crypto asset services.”
The stablecoin market, currently dominated by Tether’s USDT/USD with a market cap exceeding $119 billion, is witnessing a surge of new entrants. Major players like PayPal and Ripple have joined the fray, recognizing the potential of stablecoins. Circle’s USDC/USD, currently the second-largest stablecoin, remains significantly smaller in scale.
Tether’s profitability within the sector is noteworthy, as it reported a staggering $5.2 billion in profit during the first half of 2024. The growth of the stablecoin industry is also being shaped by evolving regulations, such as the European Union’s Markets in Crypto Assets (MiCA) framework, which provides much-needed clarity for crypto tokens.
Revolut has been actively engaged in the cryptocurrency space for several years, enabling users to buy and sell crypto through its app. In May, the company took a significant step forward by launching a dedicated cryptocurrency exchange, catering to more experienced traders. This move underscores Revolut’s commitment to expanding its crypto offerings.
The burgeoning interest in stablecoins is poised to be a key topic of discussion at Benzinga’s Future of Digital Assets event on November 19, 2024. Industry experts will convene to explore the evolving role of digital currencies in global finance.
