Revolut is exploring the launch of stablecoins, while Robinhood rules out immediate plans

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Revolut is considering launching its own stablecoin as part of its growing suite of crypto products, according to a Bloomberg report. The fintech giant is reportedly evaluating its options to launch a stablecoin, but has yet to make a final decision on whether to proceed.

There have also been rumors that Robinhood might launch a stablecoin, but a company spokesperson clarified that there are “no imminent plans” for such a launch. Meanwhile, Revolut has neither confirmed nor denied its own plans to issue a stablecoin.

While Robinhood has ruled out any immediate action in this space, Revolut remains non-committal. A Revolut spokesperson said the company plans to “further grow” its crypto offerings, although he did not specify whether a stablecoin would be part of those plans.

The move comes at a time when the stablecoin market, dominated by Tether’s USDT, is facing increased regulatory scrutiny, particularly in the European Union.

The upcoming EU Regulation on Markets in Crypto-assets (MiCA), which will come into full force at the end of 2024, is expected to reshape the stablecoin landscape. MiCA requires stablecoin issuers to hold electronic currency licenses and meet stricter regulatory standards. Revolut’s potential market entry could challenge Tether’s dominance as the company tries to navigate the new regulatory framework.

USDT currently controls more than two-thirds of the $170 billion stablecoin market, with a circulation of nearly $120 billion. However, the impending MiCA rules could force EU exchanges to remove stablecoins that do not comply with these regulations, posing a risk to keeping Tether on the market.

As stablecoins gain traction beyond crypto exchanges and into broader financial applications, the profitability of issuing such tokens has attracted the attention of major fintech players. Tether reported earning $5.2 billion in the first half of 2024, largely from the reserves backing its USDT token, highlighting the lucrative potential of issuing stablecoins.

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