As an analyst with over two decades of experience in the financial industry, I’ve witnessed the evolution of digital assets from a niche interest to a global phenomenon. Revolut’s entry into the stablecoin market is not just another step in this progression; it’s a giant leap towards mainstream adoption.
According to reports, Fintech company Revolut, known for its cryptocurrency compatibility, is considering entering the market for stablecoins – digital assets that are tied to traditional currencies – as more tech-driven finance firms explore broadening their cryptographic portfolio.
As per the report, the bank currently providing various cryptocurrency services is contemplating the introduction of a new stablecoin. This proposed coin will be fully collateralized with national reserve assets, similar to other digital assets within its class. The potential token might be linked to the British pound given that the company’s headquarters are located in the United Kingdom.
Revolut to Add Stablecoin to Crypto Services
Since its debut in the UK as a money transfer service back in 2017, Revolut has been gradually expanding its crypto offerings. At first, customers were limited to buying and selling just a handful of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Meanwhile, the bank has broadened its services to encompass over 175 digital assets, such as the well-known meme coins Dogecoin (DOGE) and Shiba Inu (SHIB), among others.
In the dynamic world of cryptocurrency, I found myself even more convinced about the company’s commitment to this field when they unveiled their independent exchange, Revolut X, in May 2024. This innovative platform was tailored specifically for our UK retail investors, reflecting their dedication to catering to us, their valued customers.
The launch came less than two months after the bank announced the introduction of Revolut Ramp in March 2024 through a partnership with ConsenSys, the developer behind MetaMask. The product allowed users to purchase cryptocurrencies directly from their Web3 wallets such as MetaMask and Trust Wallet.
Besides broadening its cryptocurrency offerings, Revolut obtained the much-anticipated UK banking license in July 2024, marking the culmination of a three-year application procedure.
With a UK banking license now secured, the company is eyeing opportunities in the rapidly growing stablecoin market. As per the latest CoinDesk report, their strategy involves prioritizing compliance, aiming to establish themselves as a trusted and secure choice for cryptocurrency users.
As a dedicated researcher in this field, I firmly embrace the concept of borderless banking, and the role of cryptocurrency is integral to this vision. Our unwavering objective is to establish ourselves as the most secure and user-friendly platform for crypto asset services.
Stablecoin Market Heats Up
At the same time, Revolut’s intent to join the stablecoin market mirrors a wider movement within the fintech and cryptocurrency sectors, as prominent firms aim to cash in on the increasing interest in reliable digital currencies.
Today, on September 18th, BitGo, a digital currency exchange, disclosed their intention to introduce a stablecoin pegged to the U.S. dollar, known as USDS, at the Token2049 gathering held in Singapore. The launch is set for January 2025.
As a crypto investor, I can confidently say that this digital currency is supported directly by short-term U.S. Treasury securities, overnight repurchase agreements, and liquid cash. This means it’s designed to stay steady, even amidst the most volatile market fluctuations.
The exchange claims USDS will be the first open-participation stablecoin.
Ripple to Expand Services with Stablecoin Launch
In April 2024, Ripple, another crypto company, expressed plans to launch a dollar-backed digital coin named RLUSD. This move aims to challenge Tether and Circle in the stablecoin market, where they currently hold significant influence. At present, Tether (USDT) controls a whopping 75% share of the market and boasts a staggering $118 billion market cap.
Ripple intends to launch its new token across various blockchain platforms, initially on Ethereum and the XRP Ledger, to challenge similar stablecoins that are already operating on these networks.
Beyond Ripple, significant players have emerged in the stablecoin market, one of them being PayPal, a renowned U.S.-based global payment company. In August 2023, they launched their own native stablecoin, referred to as PayPal USD (PYUSD). Since its introduction, the digital asset has surpassed a $1 billion market capitalization.
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2024-09-18 17:54