Fintech company Revolut is planning to launch its own stablecoin, according to a report by Coindesk, which spoke to people familiar with the situation. The London-based company aims to grow its crypto services and compete with PayPal, Ripple, and BitGo in the profitable stablecoin market. Sources say Revolut is positioning itself as an important player, focusing on providing safety and following the rules for crypto users. Revolut’s move to create a stablecoin comes as more companies are entering this growing sector.
Revolut Expands Its Crypto Offerings with New Exchange
The stablecoin market, led by Tether’s USDT with a value of around $119 billion, is drawing more interest from fintech and blockchain companies. Circle’s USDC, the second-largest stablecoin, is about a third of Tether’s size. Revolut’s decision to enter this market follows PayPal’s launch of its stablecoin last year, with Ripple and BitGo also planning to release their own tokens soon.
Stablecoins, which are tied to real-world assets like government bonds, offer steady returns through interest, making them appealing to businesses. For example, Tether made an impressive $5.2 billion profit in the first half of the year.
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Revolut has supported cryptocurrency for a while, introducing crypto trading in its app years ago. In May, the company launched a separate cryptocurrency exchange aimed at experienced traders, expanding its presence in the digital asset space.
Revolut Enters the Stablecoin Market Amid Regulatory Changes
Revolut’s plan to launch a stablecoin comes as regulations, especially in Europe, are becoming clearer. The Markets in Crypto Assets (MiCA) framework is expected to provide more guidance on crypto tokens, which could help the industry grow.
With a UK banking license secured in July and a $45 billion valuation earlier this year, Revolut is looking to expand its operations. By entering the stablecoin market, the company aims to offer more services and meet the rising demand for trustworthy and regulated digital currencies.
Stablecoins, which are tied to real-world assets, could become a significant source of income for Revolut as it grows globally. However, competition may increase as companies like PayPal and Ripple also enter the market.
Recently, Revolut partnered with Ledger Live, a well-known platform for managing digital assets, to make buying crypto easier and faster. The deal allows Revolut users to buy digital assets directly through the Ledger Live app and convert their regular money into crypto without identity checks or multiple steps.
SEE ALSO: Bitgo to Launch Usds Stablecoin, Offering Rewards for Liquidity
