Revolut to Launch Crypto Stablecoin

Fintech firm Revolut is said to be developing its own crypto stablecoin.

Revolut is a London-based Fintech company that offers cryptocurrency trading, and recently acquired a UK banking license in July 2024. The firm was valued at more than $45 billion earlier this year, and is now said to be quite far along in creating a stablecoin, according to four people who have heard about the plan, as per Coindesk.

What is a stablecoin?

A stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as a fiat currency (like USD) or Gold, to maintain a stable price. Stablecoins exist to provide an alternative to the high volatility of traditional cryptocurrencies, making them potentially more suitable for common transactions, or for holding an asset at a stable price.

The stablecoin industry is highly lucrative, with Tether’s USDT dominating 75% of the market with its stablecoin, which has a market cap of $119 billion. The market is starting to get more competitive, with notable companies like PayPal issuing a stablecoin, as well as crypto firms like Ripple and BitGo aiming to launch their own stablecoins.

Revolut’s crypto background

Revolut are known to be a crypto-friendly company, and have allowed the buying and selling of crypto within its app for several years. They’ve also launched their very own crypto exchange (CEX) to compete with leading crypto exchanges, putting them among the first banks to build a standalone crypto exchange to offer to their 40 million+ customers worldwide.

A Revolut spokesperson has confirmed that the company plan to expand its cryptocurrency products, with the aim to become a safe option for investors and traders, in what is a fast-growing industry.

Disclaimer: The information provided in this article is NOT financial advice.