The fintech giant Revolut has made significant waves in the financial world after securing a UK banking license in July 2025. With this milestone achieved, the company is now reportedly setting its sights on the rapidly expanding stablecoin market—positioning itself to compete with major players like Tether, Circle, PayPal, Ripple, and BitGo.
While Revolut has long maintained a crypto-friendly stance by allowing users to buy, sell, and trade digital assets directly within its app, its potential entry into issuing a regulated stablecoin marks a strategic evolution. This move not only aligns with its mission of building borderless banking solutions but also leverages its newly acquired banking status as a competitive advantage in the evolving digital asset landscape.
Why the Banking License Gives Revolut a Strategic Edge
Revolut’s acquisition of a full UK banking license is more than just a regulatory upgrade—it’s a game-changer for its ambitions in the crypto space. According to reports, the company is now actively exploring the launch of its own stablecoin, backed by regulatory compliance and traditional financial infrastructure.
A spokesperson for Revolut emphasized that the company aims to expand its cryptocurrency offerings while prioritizing security and regulatory adherence. “Cryptocurrency is a core part of our vision for borderless banking,” they stated. “We’re committed to becoming the safest and most accessible provider of crypto asset services.”
This approach reflects a “compliance-first” strategy, which could position Revolut as a trusted gateway between traditional finance and decentralized ecosystems. Unlike many existing stablecoin issuers that operate under fintech or electronic money institution (EMI) licenses, Revolut’s status as a licensed bank provides stronger legal and financial oversight—potentially increasing user trust and institutional adoption.
In May 2025, Revolut launched a dedicated crypto exchange platform for experienced traders, further signaling its deepening involvement in digital assets. Now, with full banking powers, it can explore on-chain settlement solutions, programmable money use cases, and even tokenized deposits—all while staying within regulatory boundaries.
The Growing Race for Stablecoin Dominance
The global stablecoin market is undergoing rapid transformation, driven by both technological innovation and tightening regulations. Currently dominated by Tether’s USDT—with a market capitalization nearing $119 billion—followed by Circle’s USDC, the sector is attracting interest from established financial players.
PayPal entered the arena in 2024 with its PYUSD stablecoin, Ripple is preparing to launch RLUSD on mainnet, and BitGo recently announced USDS during Token2049 in Singapore, targeting a 2025 launch. These developments highlight a clear trend: trusted financial and tech institutions are increasingly embracing blockchain-based payment solutions.
Tether’s profitability underscores the sector’s potential—its first-half 2025 profits reached an impressive $5.2 billion. However, new regulatory frameworks are reshaping who can participate. In Europe, the Markets in Crypto-Assets (MiCA) regulation now mandates that only EMIs and credit institutions (including banks) can issue or distribute stablecoins within the European Economic Area (EEA) after June 30, 2024.
This rule effectively creates barriers for non-bank issuers and opens doors for licensed entities like Revolut. With its UK banking license, Revolut is uniquely positioned to navigate MiCA compliance and potentially offer a euro- or pound-backed stablecoin across Europe—giving it a first-mover advantage among neobanks.
Regulatory Landscape: UK and Europe Shape the Future
Regulatory attitudes vary significantly across regions—but recent moves suggest growing institutional acceptance of blockchain technology. In the UK, the current government has shown strong support for digital innovation, including exploration of a central bank digital currency (CBDC). This openness may create a favorable environment for Revolut’s stablecoin ambitions.
Meanwhile, MiCA represents one of the most comprehensive regulatory frameworks for crypto assets globally. By requiring strict capital reserves, transparency, and consumer protections, it aims to reduce systemic risk while fostering innovation. For Revolut, compliance isn’t just a hurdle—it’s a competitive edge.
As a licensed bank, Revolut already meets many of MiCA’s core requirements, such as holding client funds securely and maintaining robust anti-money laundering (AML) protocols. This foundation allows it to move faster than non-bank competitors when launching regulated digital assets.
Moreover, Revolut’s widespread popularity among international students and expatriates in Europe gives it a ready-made user base for cross-border payment solutions. A Revolut-issued stablecoin could streamline remittances, reduce FX fees, and enable near-instant settlements—addressing real-world pain points with blockchain efficiency.
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Frequently Asked Questions
Q: Is Revolut officially launching a stablecoin?
A: As of now, Revolut has not officially confirmed the launch of a stablecoin. However, multiple reports indicate that the company is actively exploring the possibility, leveraging its newly acquired banking license to ensure full regulatory compliance.
Q: How does MiCA affect stablecoin issuers?
A: Under MiCA regulations effective from June 30, 2024, only electronic money institutions (EMIs) and credit institutions (like banks) can issue or provide stablecoin services within the European Economic Area. This restricts non-compliant entities and favors regulated players like Revolut.
Q: Could Revolut's stablecoin be used globally?
A: Initially, any stablecoin issued by Revolut would likely focus on European markets due to MiCA compliance needs. However, given Revolut’s international user base, global expansion could follow pending local regulatory approvals.
Q: What advantages does a bank-issued stablecoin have?
A: Bank-issued stablecoins benefit from higher regulatory scrutiny, greater trust, better integration with traditional financial systems, and stronger consumer protection mechanisms—making them more appealing to mainstream users and institutions.
Q: Will Revolut's stablecoin be pegged to the British pound?
A: While unconfirmed, it’s highly plausible that a Revolut-issued stablecoin would be pegged to major fiat currencies like GBP or EUR, especially given its European footprint and banking license jurisdiction.
Q: How does this impact everyday users?
A: If launched, a Revolut stablecoin could offer faster, cheaper cross-border transactions, seamless integration with existing accounts, and enhanced accessibility to blockchain-based financial tools—all within a regulated environment.
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