Revolut Plans to Launch its Own Stablecoin

According to CoinDesk, citing four sources, British fintech company Revolut is planning to launch its own stablecoin. Two of the sources revealed that the company has made significant progress in creating the stablecoin.

Revolut, which offers cryptocurrency trading services, has 45 million users worldwide and received a UK banking license in July. The company announced a secondary share sale last month to provide liquidity for its employees, valuing the company at $45 billion.

When asked about the stablecoin plans, a Revolut spokesperson said the company wants to expand its cryptocurrency offerings and be a safe haven for the entire cryptocurrency community in a compliant manner. In an email, the spokesperson said:

"Cryptocurrency is a key part of our borderless banking vision and we have a clear mission to become the safest and most convenient provider of crypto assets."

The stablecoin space is currently dominated by Tether's USDT, with a market cap of around $119 billion, followed by Circle's USDC, with a market cap of around $354 billion. Payment giant PayPal launched its own dollar-backed stablecoin [PYUSD] in August last year, and blockchain company Ripple plans to join the market in the coming weeks. Cryptocurrency custodian BitGo also announced plans to launch a [US dollar stablecoin USDS] yesterday.

Stablecoins are pegged to real-world assets, and issuers typically purchase government-issued bonds to back their value, providing them with a stable source of interest income and generating substantial profits. Tether's second-quarter report released in July [showed] a record net profit of $5.2 billion.

This trend may also be driven in part by the initial guidance on crypto tokens issued in the form of the [Markets in Crypto-Assets (MiCA) regulatory framework] in Europe.