UK fintech Revolut is looking to significantly bolster its cryptocurrency ambitions by launching its own native stablecoin.
According to four people who have heard about the plans of a Revolut stablecoin and are close to the situation, they revealed that the digital bank is “quite far along” in its plans to eventually launch.
A spokesperson from Revolut stated in an email: “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.”
Compliance appears to be at the forefront of any potential stablecoin launch for Revolut with the incoming Markets in Crypto Assets (MiCA) regulations set to launch across Europe next December.
The UK has also ramped up its efforts to provide further regulatory clarity over the crypto and digital assets sector. Recently, the country proposed a bill that would recognise digital assets, like stablecoins, as legal property under a new classification.
For Revolut, a native stablecoin will signify its commitment to being a leader in crypto for the UK. The licensed UK bank has enabled crypto deposits and transfers for several years, being one of the more prominent financial services in the country to do so.
Revolut went one step further in its crypto ambitions last May by launching its own crypto exchange – Revolut X – which will no doubt help accommodate a potential native stablecoin the company plans to launch.
The potential arrival of a native Revolut stablecoin further exemplifies the significant growth the stablecoin market has experienced over the last year.
The total stablecoin market cap is roughly estimated to be worth over $172bn, which is dominated by Tether’s USDT, with a market cap just shy of $120bn.
Along with Circle’s USDC stablecoin which has a lionshare of the market, more and more financial services have launched their own stablecoins in recent years, particularly PayPal and its PYUSD token last year.
Other companies such as Ripple Labs and BitGo have also confirmed their intentions of launching their own stablecoins, with the market becoming increasingly more competitive.
Not only would Revolut, if regulatory compliant, look to control a majority of the UK stablecoin market, it may also have intentions to expand its offering to the territories it is active in if the stablecoin were to be launched.
