tl;dr
Revolut, a leading neobank, is developing its own stablecoin to expand its crypto offerings, following the 2024 launch of its centralized crypto exchange, Revolut X, in the EU. Stablecoins, which are crypto tokens pegged to stable currencies like the U.S. dollar, offer faster and cheaper payment sol...
Revolut, a leading neobank valued at $48 billion and serving over 55 million retail and 500,000 business customers, is developing its own stablecoin to expand its crypto offerings amid an evolving regulatory environment. This initiative follows the 2024 launch of Revolut X, a centralized crypto exchange available throughout the European Union.
Stablecoins are crypto tokens pegged to stable assets such as the U.S. dollar, enabling faster and cheaper payments and remittances compared to traditional methods. They also offer potential yield generation through collateral reserves, a model successfully employed by prominent issuers like Circle and Tether. Revolut is reportedly in discussions with crypto-native firms but has yet to officially confirm details.
The stablecoin market is booming, currently valued at $251 billion, with increasing interest from retail giants like Amazon, Walmart, and Expedia, alongside major financial institutions including Bank of America, JP Morgan, Citigroup, and Wells Fargo. This wave of interest is driven by favorable legislative advances in the U.S., notably the bipartisan GENIUS Act, which aims to establish a regulatory framework for stablecoin issuance.
Despite the growth opportunities, concerns linger. Senator Elizabeth Warren has vocalized worries about privacy risks and anti-competitive practices linked to Big Tech companies potentially issuing stablecoins that could exploit consumer data. As thousands of new stablecoins potentially enter the market, competition with established leaders such as Tether and Circle is expected to intensify.
Overall, Revolut’s stablecoin project is part of a broader trend among neobanks and traditional financial players embracing digital assets. This momentum reflects a shift toward integrating cryptocurrencies into mainstream financial services, with stablecoins playing a central role in enabling more efficient, cost-effective cross-border transactions and expanding crypto accessibility.