Lawrence Damilola
Revolut, the London-based fintech company, is reportedly working on its own stablecoin as it continues to expand its cryptocurrency offerings.
A number of sources have reported that the firm is working on the development of the token. A spokesperson from Revolut stated that the company aims to grow its crypto services while prioritizing compliance and security.
“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 spokesperson told CoinDesk.
The move places Revolut in the company of other financial and blockchain firms, such as PayPal, Ripple, and BitGo, which are either already in or planning to enter the stablecoin market. PayPal launched its stablecoin last year, and Ripple and BitGo have announced plans to issue their own tokens in the near future.
Stablecoin Market Sees Increased Competition as Firms Target Profitability
The stablecoin sector is currently dominated by Tether’s USDT, with a market cap of approximately $119 billion. Circle’s USDC is the second-largest stablecoin and holds about one-third of Tether’s market size. These digital currencies are often backed by real-world assets like government-issued debt, providing stability to their value. Tether, for example, reported a $5.2 billion profit for the first half of the year, driven by interest payments on the assets backing the tokens.
With stablecoins’ increasing profitability, fintech and blockchain firms are entering the space. Revolut’s move mirrors similar strategies by competitors looking to capture a share of this growing market.
Revolut’s Existing Crypto Offerings
Revolut has already been active in the cryptocurrency space. The company introduced crypto trading within its app several years ago and launched a standalone cryptocurrency exchange for more experienced traders in May. In addition, the firm integrated with Ledger Live last month, allowing users to purchase digital assets directly through the Ledger Live app.
This integration enables Revolut users to convert fiat currency into crypto without needing multiple identity checks. Revolut’s recent actions suggest the company is positioning itself to offer its users a wide range of digital asset services, enhancing both the convenience and security of crypto transactions.
The company has been steadily growing, having secured a UK banking license in July and achieving a valuation of $45 billion earlier this year.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
