Revolut is considering launching its own stablecoin as part of its growing crypto product suite, according to a Bloomberg report. The fintech giant is reportedly evaluating its options to release a stablecoin, but has yet to make a final decision on whether to proceed.
There had also been rumors that Robinhood might release a stablecoin, but a spokesperson for the company clarified that there are “no imminent plans” for such a launch. Meanwhile, Revolut has neither confirmed nor denied its own plans to issue a stablecoin.
While Robinhood has ruled out any immediate action in this space, Revolut remains non-committal. A spokesperson for Revolut stated that the company plans to “further grow” its crypto offerings, though they did not specify whether a stablecoin will be part of those plans.
This move comes at a time when the stablecoin market, dominated by Tether’s USDT, faces increased regulatory scrutiny, particularly in the European Union.
The EU’s forthcoming Markets in Crypto-Assets (MiCA) regulation, set to take full effect at the end of 2024, is expected to reshape the stablecoin landscape. MiCA mandates that stablecoin issuers must hold electronic money licenses and meet stricter regulatory standards. Revolut’s potential entry into the market could challenge Tether’s dominance, as the company seeks to navigate the new regulatory framework.
USDT currently controls more than two-thirds of the $170 billion stablecoin market, with a circulation of nearly $120 billion. However, the impending MiCA rules could force exchanges in the EU to delist stablecoins that do not comply with these regulations, posing a risk to Tether’s hold on the market.
As stablecoins gain traction beyond crypto exchanges and into broader financial applications, the profitability of issuing such tokens has caught the attention of major fintech players. Tether reported earning $5.2 billion in profit in the first half of 2024, largely from reserves backing its USDT token, highlighting the lucrative potential of stablecoin issuance.
