Coinspeaker Crypto-friendly Bank Revolut to Expand Services with New Stablecoin Offering
Revolut, a crypto-friendly bank, is reportedly planning to enter the stablecoin market, joining a growing list of fintech companies seeking to expand their digital asset offerings.
According to the report, the bank which already offers several crypto services is considering the launch of a new stablecoin, which will be fully backed with national reserve assets like other digital assets in the category. The upcoming token could potentially be tied to the British pound as the company is headquartered in the United Kingdom.
Revolut to Add Stablecoin to Crypto Services
Revolut has been steadily building its crypto services since 2017, two years after launching in the UK as a money transfer platform. Initially, users could only buy and sell a few select cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH).
However, over time, the bank has expanded its offering to include more than 175 digital assets, including popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
The company’s dedication to crypto was further underscored in May 2024 when it launched a standalone exchange dubbed Revolut X. The platform is designed to specially cater to its UK retail 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.
In addition to expanding its crypto services, Revolut recently received its long-awaited UK banking license in July 2024 after a three-year process.
Now, with its UK banking license in hand, the company is setting its sights on the stablecoin market. According to the CoinDesk report, the bank aims to adopt a compliance-first approach, positioning itself as a safe and reliable option for crypto users.
“Crypto is a big part of our belief in banking without borders and we have a clear mission to become the safest and most accessible provider of crypto asset services,” the spokesman said.
Stablecoin Market Heats Up
Meanwhile, Revolut’s planned entry into the stablecoin market aligns with a broader trend in the fintech and crypto industries, where major companies are seeking to capitalize on the growing demand for stable digital assets.
Earlier today, September 18, BitGo, a crypto exchange, announced at the Token2049 event in Singapore that it plans to launch its own dollar-backed stablecoin, USDS, in January 2025.
According to the company, the stablecoin will be fully backed by short-term Treasury bills, overnight repos, and cash, ensuring it maintains stability even in turbulent market conditions.
The exchange claims USDS will be the first open-participation stablecoin.
Ripple to Expand Services with Stablecoin Launch
In April 2024, another crypto firm Ripple also announced its intention to introduce a dollar-pegged stablecoin RLUSD to compete with Tether and Circle. Both companies are currently dominating the stablecoin market, with USDT boasting a market share of 75% and a market capitalization of $118 billion.
Like these two stablecoins which is already available on different blockchains, Ripple plans to issue the upcoming token on multiple networks, starting with Ethereum and the XRP Ledger to compete against them.
Apart from Ripple, the stablecoin market has also seen the likes of PayPal, a global payment firm based in the United States. The company introduced its own native stablecoin known as PayPal USD (PYUSD) in August 2023. Since then, the digital asset has crossed over $1 billion market cap.
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Crypto-friendly Bank Revolut to Expand Services with New Stablecoin Offering