London-based fintech company Revolut, known for its cryptocurrency trading services, is reportedly planning to introduce its own stablecoin.
What Happened: Quoting sources, Coindesk reported that Revolut, which secured a U.K. banking license in July and reached a valuation of $45 billion earlier this year, is said to be progressing significantly with the project, according to two of the four individuals who shared insights on the plan.
When asked about its stablecoin initiative, a Revolut spokesperson indicated the company's broader vision to enhance its cryptocurrency offerings while maintaining a compliance-first approach.
The spokesperson emphasized Revolut's mission, stating, "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."
The stablecoin market, dominated by Tether's (CRYPTO: USDT) with a market cap of around $119 billion, is seeing new entrants, including major players like PayPal (NASDAQ:PYPL) and Ripple (CRYPTO: XRP).
Also Read: Swiss Stock Exchange Explores Crypto Trading Platform In Europe
Circle's (CRYPTO: USDC) is currently the second-largest stablecoin, though it is significantly smaller in scale.
Tether's profitability in the sector is notable, as it reported $5.2 billion in profit in the first half of 2024.
The growth of the stablecoin industry is also influenced by evolving regulations, such as the European Union's Markets in Crypto Assets (MiCA) framework, which provides clearer guidance for crypto tokens.
Revolut has been active in the cryptocurrency space for several years, allowing users to buy and sell crypto through its app.
In May, the company launched a standalone cryptocurrency exchange catering to more experienced traders, signaling its ongoing commitment to expand its crypto offerings.
What's Next: The growing interest in stablecoins will be one of the key topics of discussion at Benzinga's Future of Digital Assets event on Nov. 19, 2024, where industry experts will explore the evolving role of digital currencies in global finance.
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