Revolut Eyes Stablecoin Amid Growing Crypto Market Interest
Revolut, a global neobank serving over 55 million retail customers and 500,000 business clients across 160 countries, is reportedly exploring the development of its own stablecoin, according to sources familiar with the matter who spoke with Decrypt.
The move comes as a wave of major corporations, spurred by a shifting regulatory environment in the United States and globally, consider entering the stablecoin market. Legislation like the U.S. Senate-passed GENERA Act, which establishes a legal framework for stablecoin issuance, is accelerating this trend.
Revolut declined comment but reaffirmed its commitment to the cryptocurrency sector and its goal of becoming “the most trusted and accessible provider of crypto asset services,” with a compliance-first approach.
Understanding Stablecoins
A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar, often through reserves of assets backing the coin’s supply. They offer advantages such as facilitating cross-border payments and reducing volatility for traders.
Financial institutions, including banks and wire services, see potential benefits in stablecoins, including lower transaction fees, faster settlement, and earning yield on backing reserves, which could be a significant revenue stream.
Market Expansion
Reports from The Wall Street Journal indicate that large retailers such as Amazon, Walmart, and Expedia Group are also considering stablecoin issuance. However, concerns were voiced by Sen. Elizabeth Warren, who warned about data privacy and competitive disadvantages for traditional financial institutions.
Industry leaders anticipate a surge in stablecoin competition, potentially challenging established players like Tether and Circle within the currently $251 billion global stablecoin market.
Revolut’s exploration, alongside moves from major financial institutions including Bank of America, JP Morgan, and others, highlights the significant opportunity and increasing competition in the emerging stablecoin sector.
