The UK government is courting Revolut as the fintech favors the US for a potential IPO

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The Treasury plans to highlight London’s appeal in planned talks with Revolut, as Britain’s most valuable fintech continues to favor a potential New York listing after securing a critical UK banking licence.

City minister Tulip Siddiq is expected to meet with Revolut in the autumn as part of a series of one-to-one talks with companies, according to the Treasury.

Topics could include Revolut’s possible listing plans among wider financial services and City issues, a source close to the ministry added.

The London-headquartered fintech, which is on track for a roughly $45 billion valuation, continues to prioritize a potential flotation on the US Nasdaq over London, a person with direct knowledge of the valuation said .

The company received a boost last month when it received a UK banking license after a three-year process with regulators.

The banking licence, which is subject to temporary restrictions, allows Revolut to hold deposits directly and thereby increase lending in the UK. It should also increase its chances of obtaining a license in the US market.

Revolut declined to comment.

Although the prospect of a listing could still be years away, a move to float in the US would be a blow to London, which has suffered from the relaunch of a string of companies in New York.

Other companies, including Cambridge chipmaker Arm, have opted to float in the US in a bid to attract a higher valuation.

Siddiq said earlier this year, ahead of the July election, that Labor would push the Financial Conduct Authority to “break down the barriers to competitiveness and growth” if elected.

Revolut co-founders Nikolay Storonsky and Vlad Yatsenko told the media last year, when the fintech was still in regulatory limbo, that they would prefer to keep the company private, but that in the event of a flotation, they might choose Nasdaq. .

The London stock market “is much less liquid, so I don’t see the point,” Storonsky said at the time.

But Revolut executives more recently left the door open to an IPO in London and backed the city’s competitiveness as a business hub.

Chairman Martin Gilbert, before securing his banking license last month, welcomed reforms to the UK listing regime. They would allow “founder-led companies like Revolut to list here, instead of having no choice,” he told the FT.

“It would definitely help if people knew who (Revolut) is in the US, especially long-term investors as opposed to private equity,” a Revolut investor said this week. “But it’s not vital.”

Revolut started as a digital payment and money transfer app in the UK before expanding globally and expanding its services such as cryptocurrency trading.

The company is selling up to $500 million worth of existing shares at a $45 billion valuation in a deal that would make it one of Britain’s most valuable banks.

The banking license follows a charm offensive by Revolut towards British politicians.

UK chief executive Francesca Carlesi, who joined fintech last year, attended a Labor Party event where Sir Keir Starmer and Rachel Reeves – now prime minister and chancellor respectively – spoke to executives about their plans for the economy and regulation.

The fintech also co-sponsored the opening reception at the Labor Party’s annual conference last year.

Revolut’s application for a banking license has been stalled by a number of issues, including its auditors warning that they could not fully verify the provenance of its income in backdated accounts from 2021 and the departure of key executives.

Additional reporting from Michael O’Dwyer and George Parker