Revolut Expands Crypto Offerings with Planned Stablecoin Launch

Fintech giant Revolut is planning to launch its own
stablecoin, Coindesk reported, citing sources familiar with the matter. With
plans to strengthen its crypto-asset offerings, the London-based firm aims to
join PayPal, Ripple, and BitGo in the highly profitable stablecoin market.

Insiders suggest the firm is positioning itself as a
key player in the space, promising both compliance and security for crypto
users. Revolut’s ambition to introduce a stablecoin comes as the sector
experiences an influx of new participants.

Stablecoin Market Set for New Entrants

Dominated by Tether’s USDT, which has a market cap of approximately $119 billion, the stablecoin space is increasingly attracting fintech and blockchain firms.

Circle’s USDC, the second-largest stablecoin, accounts
for roughly a third of Tether’s market size. Revolut’s venture into this market
follows similar moves by PayPal, which launched its stablecoin last year, while
Ripple and BitGo have also disclosed plans to issue tokens soon.

Stablecoins, which are pegged to real-world assets
like government-issued debt, provide a source of steady returns through
interest payments, making them particularly attractive to companies. For
instance, Tether reported a staggering $5.2 billion profit for the first half
of the year.

Revolut has long embraced cryptocurrency, having
introduced crypto trading within its app several years ago. More recently, in
May, the company launched a standalone cryptocurrency exchange targeting
experienced traders, further showcasing its growing footprint in the digital
asset world.

Revolut Embraces Crypto

Revolut’s stablecoin ambitions come at a time when
regulatory frameworks, particularly in Europe, are beginning to take shape. The
Markets in Crypto Assets framework is expected to provide clearer
guidance on crypto-tokens, which could further legitimize and encourage growth
within the industry.

With a UK banking license secured in July and a
valuation of $45 billion earlier this year, Revolut aims to scale its
operations. By entering the stablecoin market, the company seeks to diversify
its offerings and capture a share of the growing demand for reliable and
compliant digital currencies.

Stablecoins’ profitability, driven by their link to
real-world assets, could be a key revenue stream for the company as it
continues to expand globally. However, competition could intensify as other
major players like PayPal and Ripple enter the space.

Last month, Revolut integrated Ledger Live, a popular
platform for managing digital assets to facilitate crypto asset purchases. In
the agreement, the fintech firm promised easier, faster, and more secure crypto
asset purchases.

The partnership allows Revolut users to purchase
digital assets directly through the Ledger Live app. Besides that, users can
reportedly convert their fiat currency into crypto within the Ledger Live app
without the need for identity checks and multiple verifications.

This article was written by Jared Kirui at www.financemagnates.com.