Revolut’s Pursuit of Stablecoin Development
Discussions have reportedly taken place between Revolut, a neobank headquartered in London, and at least one firm in the cryptocurrency sector regarding the development of a stablecoin. These talks are seen as part of broader industry interest driven by evolving regulatory conditions.
Regulatory changes are currently supporting increased interest in the digital currency sector. This includes discussions with Revolut, which has not officially confirmed its plans for a stablecoin.
The push towards stablecoins is also observed among other major companies and financial institutions, as they explore their roles in this evolving landscape. For instance, recent legislative developments in the United States have seen the passage of the GENIUS Act by the Senate. This bipartisan bill aims to create a legal framework for stablecoin issuance and is awaiting approval from the House of Representatives.
Stablecoins tied to fiat value are increasingly attractive due to their potential to enhance payment systems through faster settlement times and lower transaction fees. They also offer opportunities for issuers to earn returns on collateral reserves.
Companies like Circle and Tether currently dominate the USD 251 billion stablecoin market, but the landscape is likely to evolve as traditional financial institutions such as Bank of America, JP Morgan, Citigroup, and Wells Fargo consider launching their own digital dollar equivalents once regulatory clarity improves. Even multinational firms in retail and travel sectors are reportedly considering similar moves.
Revolut’s entry into the cryptocurrency exchange space with Revolut X, launched in 2024, is a notable move. Developing its proprietary stablecoin would extend this presence, although no formal timeline or product details have been shared publicly.
Some lawmakers express concerns about large corporations’ increasing involvement in digital asset issuance. They cite potential risks related to data privacy and market competition. For example, U.S. senators have highlighted the issue of corporate tracking consumer behavior while potentially pushing smaller players aside.