Rory Tanner explained to UK policymakers why Revolut is exploring the functionality of a sterling-denominated stablecoin in a bid to incentivise consumers and merchants
The UK is “already behind” the likes of the US and Europe in a bid to develop a GBP-denominated stablecoin, Revolut’s Head of UK Government Affairs and Public Policy, Rory Tanner, says.
Speaking before the UK House of Lords today (25 March), Tanner outlined Revolut’s stablecoin proposition. The newly designated UK bank was one of four financial companies to be invited to the Financial Conduct Authority’s (FCA) digital sandbox to test stablecoin payments.
Tanner revealed Revolut is now in a unique position to scope the potential of a GBP stablecoin as the company has 55,000 UK customers and 550,000 European customers, who hold a US dollar-denominated stablecoin.
This led Tanner to answer a question on why the country needs a GBP-denominated stablecoin, in which he highlighted that the US and Europe are already ahead in terms of regulation and not seizing the opportunity to attract entrepreneurs to invest in the UK cryptoasset market.
“(Revolut’s) ambition is for stablecoins to become a success story; we view the UK as the destination to achieve that,” said Tanner. “We are currently on the right approach, and timelines are areas to improve, but we believe our position as the UK’s largest fintech will help.”
Revolut’s 2025 financial year results revealed the company’s Wealth product, which enables users to trade cryptocurrencies and hold stablecoins, accumulated $876m (£663m).
The company has a dedicated crypto exchange platform, Revolut X, and is regulated by the Financial Conduct Authority (FCA) to offer wider cryptoasset services under the agency’s Anti-Money Laundering (AML) rules. It also has a Markets in Crypto Assets (MiCA) operating licence from the Cyprus Securities and Exchange Commission to offer its cryptoasset services across 30 European Economic Area (EEA) countries.
The commercial need for a GBP stablecoin
Tanner stated that due to Revolut’s recent acquisition of a UK banking licence, any potential issuance of a GBP stablecoin would fall under Revolut, and not its new entity, Revolut Bank UK.
This is due to the Bank of England proposing that the same UK entity/group can not issue stablecoins from any other affiliating subsidiaries.
When asked why Revolut were interested in issuing and offering stablecoins as both a form of retail and wholesale payment, Tanner said there is a commercial incentive involved that would not only benefit the company, but also the UK economy to attract entrepreneurs to invest in the market.
For companies such as Revolut seeking this commercial incentive, Tanner cited remuneration, otherwise known as interest, as the viability for its stablecoin offering. He also revealed that no remuneration would cause fees to become attached to payments, which would not align with Revolut’s stablecoin plans, as the company is seeking a zero-fee attachment to all stablecoin payments.
Furthermore, to incentivise consumer adoption, Tanner stated Revolut will be supporting stablecoin yield, or rewards, for consumer deposits as it is “much more pro-competition”.
“We need to incentivise a customer of a stablecoin over a card payment, we think rewards are a way of doing that,” he said.
“Stablecoins can also contribute to the UK economy, we think it’s a vital part of the regime to offer a zero cost option. If it’s paid, you remove the incentive for a customer, merchant, etc., and entrepreneurs will also not choose the UK.
“We believe we need to be at the cutting-edge and the forefront of innovation and we see stablecoins as a true opportunity. We are also a reputable brand and someone who can be trusted.”
A current drawback in Revolut’s commercial plans for a GBP stablecoin centres around the Bank of England’s proposal to ban ‘branded’ stablecoins. This would mean any potential native stablecoin issued by Revolut is prohibited from including or mentioning the company name.
The use cases for a GBP stablecoin
While Tanner acknowledged that mass consumer use cases for retail payments of stablecoins is quite scarce, he believes there is a remittance opportunity between the UK and India.
Tanner stated that the remittance corridor from the UK to India is the seventh-largest in the world, highlighting the opportunity to test B2B stablecoin payment use cases to rapidly settle near instantly, while also being more cost-effective and available 24/7.
This, Tanner believes, could incentivise businesses as stablecoin cross-border payments fees are significantly lower than on traditional rails. He revealed that on its platform, only 60% of payments are instant, whilst 95% are settled within 24 hours.
He also cited the rise of pay-by-bank and how several years ago, back in 2019, it was never mentioned as part of the Open Banking legal framework.
Tanner believes due to stablecoins still being in their relative infancy, over the next four to five years, more use cases will be developed that could unearth new possibilities with stablecoins.
