London-based fintech group Revolut reportedly wants to expand its crypto offerings with the launch of its stablecoin, joining a list of other fintech firms that seek to broaden their digital assets offerings.
Valued at $45 billion, Revolut, which obtained a UK banking license recently is at advanced stages of developing its own stablecoin. With this latest development, Revolut joins other entrants like Ripple, PayPal, and BitGo into the stablecoin sector.
Revolut wants to broaden its offerings
According to two people familiar with the development, the crypto-friendly bank, already offering several other crypto services is far along with creating the stablecoin. Asked about the stablecoin plans, a Revolut spokesperson confirmed the development saying the financial services company wants to expand its crypto offerings with a compliance-first approach to become a safe harbor for the crypto community.
“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.”
Revolut spokesperson
Just like other digital assets in the category, the stablecoin will be fully backed by national reserve assets. According to reports, the upcoming token could potentially be tied to the British pound. Revolut is headquartered in the UK, which could be the justification.
Tether’s USDT currently dominates the stablecoin market with a market capitalization of $119 billion, and is growing with new entrants.
PayPal joined the stablecoin sector recently, while blockchain firm Ripple is scheduled to do the same soon together with BitGo’s upcoming launch which was announced at Token2049 in Singapore.
Europe presents conducive market for stablecoins
The regulatory clarity in the European markets is reportedly cultivating fertile ground for digital assets like stablecoins to flourish in the block. One such regulatory framework is the Markets in Crypto Assets (MiCA) which helps bring clarity around the cryptocurrency industry within the European community.
For several years, Revolut has allowed cryptocurrency trading within its app and launched a standalone crypto exchange known as Revolut X for its UK customers in May.
This was achieved shortly after the financial services provider was issued with a banking license in the UK, more than three years after it submitted its application.
The company has been steadily building its crypto services since 2017, which was two years after it debuted in the UK as a money transfer service provider. Customers could initially trade a few cryptocurrencies like Bitcoin and Ethereum before expanding to have more than 175 digital assets including popular meme coins like Dogecoin and Shiba Inu.
Now, with stablecoin coming, the company wants to further broaden its offerings and consolidate its market share. Typically pegged to real-world assets like fiat currencies and backed by reserves like government-issued debt that generates income, stablecoins are profitable, creating scope for Revolut to venture into the business.
Since its launch in 2015, Revolut has grown to have 40 million customers globally with 9 million in the UK and 2.8 million in Ireland.
Source: https://www.cryptopolitan.com/revolut-expands-services-with-stablecoin/