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Revolut, the London-based fintech firm known for its innovative approach to digital finance, is reportedly preparing to launch its fiat-pegged stablecoin.
This new venture aims to tap into the rapidly growing stablecoin market, which has seen significant interest and investment.
While details about the stablecoin’s specific peg—whether to the euro or US dollar—remain under wraps, the development marks a notable expansion in Revolut’s financial services.
Since its inception, Revolut has been at the forefront of integrating cryptocurrency into mainstream finance.
The platform, which began supporting digital asset trading in 2017, recently enhanced its offerings by launching a crypto exchange for British professional investors in May 2024.
Additionally, Revolut secured a UK banking license in June as part of its broader strategy to grow within the crypto sector.
Stablecoin market is valued at $171 billion
As of September 18, the global stablecoin market is valued at $171 billion, reflecting its burgeoning significance within the cryptocurrency ecosystem, just behind Bitcoin and Ethereum.
Stablecoin issuers generally maintain reserves of Treasury bills and bonds, which generate interest and contribute to their profitability.
Tether, the leading stablecoin issuer, reported a profit of $5.2 billion for the first half of the year.
The rise in stablecoin interest is further fueled by anticipated regulations in the US and Europe.
In the European Union, the implementation of the Markets in Crypto-Assets Regulation has created a more favorable environment for stablecoin issuers like Circle.
In the US, legislative efforts by figures such as Patrick McHenry and Maxine Waters are advancing towards a comprehensive stablecoin regulatory framework.
Analysts like Bitwise CIO Matt Hougan suggest that these regulations could have a profound impact on the broader cryptocurrency market.
Revolut’s crypto vision
A Revolut spokesperson highlighted the company’s commitment to pioneering safe and accessible crypto asset services.
“Crypto is a key part of our vision for borderless banking, and we aim to be the most secure and user-friendly provider in this space,” the spokesperson told CoinDesk.
The stablecoin market’s growth is driven by the ability of these tokens to generate revenue through government-issued debt, enhancing their profitability.
As regulatory clarity improves, more firms are expected to enter this space, expanding the options available to consumers and investors alike.
Revolut’s planned entry into the stablecoin market represents a strategic move to solidify its position within the evolving financial landscape.
With increasing regulatory support and a growing appetite for stablecoins, Revolut’s new token could become a significant player in the sector, contributing to the broader trend of integrating digital currencies into traditional finance.
The post Revolut plans entry into stablecoin market with new fiat-pegged token—report appeared first on Invezz
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