TLDR
- Revolut received full approval to operate as a licensed bank in the United Kingdom after the PRA lifted restrictions.
- Revolut will begin a phased rollout of current accounts, starting with a small group of customers.
- Deposits in the new UK bank will receive protection up to £85,000 under the Financial Services Compensation Scheme.
- Revolut will continue to offer cryptocurrency trading through a separate entity that is not covered by FSCS protection.
- The company plans to invest £3 billion in the UK and create 1,000 high-skilled jobs.
Revolut has secured full approval to operate as a licensed bank in the United Kingdom. The Prudential Regulation Authority lifted restrictions on its banking licence, and the company confirmed immediate rollout plans. The decision allows Revolut Bank UK Ltd to begin offering regulated banking services across its largest market.
Revolut Begins Phased UK Bank Rollout
Revolut said it will start rolling out current accounts within days, and it will begin with a limited customer group. The company will expand access gradually over the coming weeks, and it will complete the migration in phases. Existing users will see no immediate changes, and the transfer process will take several months.
The new banking entity will provide deposits protected under the Financial Services Compensation Scheme. The scheme safeguards eligible deposits up to $114,000, or £85,000, per customer if a bank fails. However, Revolut will continue to operate cryptocurrency trading through a separate entity, and that service will not receive FSCS protection.
Revolut currently serves about 13 million customers in the United Kingdom, which remains its largest market. The company confirmed that it will move customers to the new banking structure in stages. It will maintain service continuity during the migration period, and it will update customers directly through the app.
Executive Statements and Regulatory Milestones
Revolut co-founder and CEO Nik Storonsky described the approval as a long-term goal for the company. He said, “Launching our UK bank has been a long-term strategic priority for Revolut, and marks a significant moment in our journey.” He added, “The UK is our home market and central to our growth.”
Francesca Carlesi, the company’s UK CEO, said the licence will support product expansion. She stated, “Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit.” She added that the new bank will operate alongside services customers already use daily.
The Financial Conduct Authority recently selected Revolut for a regulatory sandbox focused on fiat-pegged stablecoins. The sandbox forms part of the UK’s framework for digital asset payments and settlement systems. Revolut will test stablecoin-related services under regulatory oversight as part of that programme.
Global Expansion Plans and U.S. Charter Bid
Revolut has also outlined major investment plans linked to its global expansion strategy. The company pledged to invest £3 billion, or $4 billion, in the United Kingdom. It also plans to create 1,000 high-skilled jobs as part of that commitment.
Separately, Revolut announced plans to invest £10 billion, or $13 billion, worldwide by 2030. The company aims to add 10,000 new roles and expand into 30 additional markets. These targets form part of its long-term international growth roadmap.
Earlier this month, Revolut applied for a de novo banking charter in the United States. It submitted applications to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. The move followed its decision to abandon a previous plan to acquire a U.S. lender.
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Source: https://blockonomi.com/revolut-launches-uk-bank-with-full-regulatory-clearance/