Revolut's Bold Move into Stablecoins: A Game-Changer for the Neobank
Revolut, the London-based neobank serving over 55 million [2] retail and 500,000 business customers across 160 countries, is reportedly venturing into the cryptocurrency space by developing its own stablecoin [1]. This move signals the company’s ambition to deepen its presence in the crypto market, building on its 2024 launch of Revolut X [3], a centralized crypto exchange available across 30 European countries. With a valuation of $48 billion [4] as of March 2025, surpassing the combined market capitalizations of cryptocurrencies like Tron and Cardano, Revolut is positioning itself as a formidable player in digital finance.
Why Stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar, backed by reserves of cash or other assets. They enable traders to enter and exit crypto positions without relying on traditional fiat systems, particularly in markets where U.S. dollars are restricted. Stablecoins also facilitate instant, low-cost payments and remittances, offering a compelling alternative to conventional payment systems. For Revolut, a stablecoin could reduce transaction fees, accelerate payment settlements, and generate yield from the collateral backing the stablecoin, a model proven profitable by industry leaders like Circle (USDC) and Tether (USDT).
Revolut’s Crypto Ecosystem and Stablecoin Ambitions
Revolut has established itself as a crypto-friendly platform, allowing users to trade over 30 cryptocurrencies, automate purchases through recurring buys, and spend crypto directly with cashback incentives on eligible transactions. The platform also offers under-18 accounts to promote financial literacy among younger users. Revolut X, its dedicated crypto trading platform, caters to professional traders with low fees, advanced charting tools, and market analysis, enhancing its appeal to high-volume users.
The company’s potential stablecoin launch could disrupt the market and challenge established players like Tether. Sources indicate Revolut is engaging with at least one crypto-native company to support this venture, though the neobank declined to comment on specifics. A spokesperson emphasized Revolut’s commitment to the crypto sector, stating, “We have a clear mission to become the most trusted and accessible provider of crypto asset services in the UK, EEA, and eventually beyond”.
The success of Revolut’s possible stablecoin [5] would hinge on regulatory compliance, particularly with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which impose stricter rules on stablecoin issuance to enhance transparency and consumer protection. Revolut’s ability to navigate these requirements, ensure user adoption, and differentiate its stablecoin with unique features will be critical.
The Impact of Revolut’s UK Banking License
Revolut’s acquisition of a UK banking license [6] marks a pivotal moment, enabling the platform to offer traditional banking products like loans and mortgages alongside its crypto services. This license enhances user trust through regulatory oversight, expands service offerings, and provides a seamless platform for managing both fiat and crypto assets. By integrating these services, Revolut positions itself as an all-in-one financial solution, setting it apart from competitors like eToro, which focuses on social trading and community engagement.
The Broader Stablecoin Boom
Revolut’s stablecoin initiative aligns with a broader trend, as companies like Amazon, Walmart, and Expedia Group explore issuing their own stablecoins, spurred by the U.S. Senate’s passage of the GENIUS Act. This bipartisan legislation, expected to be signed into law by August 2025, establishes a legal framework for stablecoins in the U.S., prompting financial giants like Bank of America, JP Morgan, Citigroup, and Wells Fargo to consider entering the $251 billion market. However, concerns persist, with Sen. Elizabeth Warren warning that Big Tech-issued stablecoins could enable data tracking and stifle competition.
What’s Next for Revolut?
Revolut’s potential stablecoin launch could redefine its role in the global financial ecosystem. By leveraging its massive customer base, compliance-first approach, and integrated financial services, the neobank is well-positioned to capture a significant share of the stablecoin market. However, addressing user challenges, ensuring regulatory compliance, and innovating to stay ahead of competitors will be crucial. As the crypto industry evolves under tightening regulations like MiCA, Revolut’s ability to adapt and deliver a user-friendly, secure stablecoin will determine its long-term success.