Revolut explores stablecoin launch as Robinhood ditches immediate plans
Key receivers
Revolut is considering launching a stablecoin but hasn't made a final decision. Robinhood has no immediate plans to enter the stablecoin market.
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According to a Bloomberg report, Revolut is considering launching its own stablecoin as part of its growing crypto product suite. The fintech giant is evaluating options for releasing a stablecoin, but has not yet made a final decision to proceed.
There were also rumors that Robinhood might launch a stablecoin, but a company spokesperson said there were “no immediate plans” for such a launch. Meanwhile, Revolut has neither confirmed nor denied its own plans to launch a stablecoin.
Regardless of whether Robinhood takes any immediate action in this area, Revolut remains non-committal. A Revolut spokesperson said the company plans to “further grow” its crypto offerings, although they did not say whether stablecoins are part of those plans.
This move comes as the Tether USDT-dominated stablecoin market is under regulatory scrutiny, especially in the European Union.
The EU's upcoming Markets in Crypto-Assets (MiCA) regulation, which is set to take full effect by the end of 2024, is expected to reshape the stablecoin landscape. The MCA mandates that stablecoin issuers hold electronic money licenses and meet strict regulatory requirements. Revolut's entry into the market could challenge Tether's dominance as the company looks to navigate the new regulatory framework.
USDT currently controls more than two-thirds of the $170 billion stablecoin market, with nearly $120 billion in circulation. However, the upcoming MiCA rules will force exchanges in the EU to list stablecoins that do not comply with these rules, creating a risk for Tether to take hold of the market.
As stablecoins move beyond crypto exchanges to a wider range of financial applications, the profitability of issuing such tokens has attracted the attention of major fintech players. Tether reported a profit of $5.2 billion in the first half of 2024, mostly from reserves backing its USDT token, underscoring the potential of the stablecoin.
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