Payments are in the driver’s seat as engines start to rev in the global stablecoin race.
Revolut has reportedly confirmed it is exploring the launch of its own stablecoin, as companies across the globe race to bring local currency-backed tokens to market and reshape cross-border payments.
Sources close to the London-based fintech have confirmed Revolut is in talks with at least one crypto-native firm to support the development of a proprietary stablecoin, according to reporting by Decrypt.
The update, published on June 19, builds on similar reports from September 2024, when four individuals familiar with the plans said the company was already “quite far along” in its stablecoin development.
Revolut has since continued its push into digital assets. Its crypto exchange, Revolut X, has gained traction in the UK and expanded into 30 European countries as of November 2024.
Launching a stablecoin is widely seen as the logical next step, and the timing could be favourable. The UK’s Financial Conduct Authority (FCA) recently unveiled draft rules for the first time, proposing a formal regulatory framework for stablecoin issuance, crypto custody and capital requirements.
Under the proposals, stablecoins pegged to fiat currencies would need to be fully backed 1:1 by liquid, low-risk assets such as short-term government bonds or bank deposits. These reserves must be held in a statutory trust and separated from the issuer’s own funds to safeguard customer assets.
North America’s divided stablecoin strategy
The FCA’s consultation papers, released in May, mark a turning point in the UK’s approach to digital assets, aiming to create a regulated environment with consumer protections on par with those found in traditional finance.
While Revolut appears to be making strides behind closed doors, in the USstablecoin discussions are unfolding more publicly, though at very different stages of progress.
On June 17, the US Senate passed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, marking the country’s first major legislative milestone for payment-focused stablecoins.
At the same time, Canada is facing a regulatory impasse. While it may be unfair to compare any other region to the US, given the political momentum driving legislation forward, Canada’s geographic proximity makes comparisons inevitable and increasingly uncomfortable.
A Bloomberg article published on June 20 spotlighted this very gap. Despite a growing appetite for a homegrown digital dollar, Canadian stablecoin efforts are being held back by a fragmented and restrictive regulatory environment.
Toronto-based Stablecorp Digital Currencies, backed by Coinbase Global and Coinbase Ventures, recently filed with the Ontario Securities Commission to bring its QCAD stablecoin to market, a push that’s been in the works for five years. However, like others before it, QCAD is stuck in limbo.
The biggest hurdle comes from the Canadian Securities Administrators (CSA), a collective of provincial regulators which classifies most stablecoins as securities or derivatives. This classification triggers strict compliance requirements, making it nearly impossible for Canadian firms to launch stablecoins which function smoothly for everyday payments or remittances.
“We really think it’s a priority in Canada to have a Canadian-denominated stablecoin,” said Lucas Matheson, CEO of Coinbase Canada. “It’s about giving Canadians access to digital assets in their own currency, for peer-to-peer payments, remittances, even national identity.”
Despite some regulatory flexibility, such as a pathway for stablecoins to qualify as “value-referenced crypto assets”, the bar is high, and only Circle’s USDC has cleared it so far.
Even if approval is granted, some in the industry question whether a CAD-backed stablecoin can attract sufficient demand. Still, as digital payments become increasingly localised, the absence of a Canadian-dollar option could grow more problematic.
“We’re looking at the US, we’re looking at Europe,” said Noah Billick, partner at Renno & Co. “We want to be part of this — but right now, we’re not.”
