Key Takeaways
- Revolut is contemplating a stablecoin launch however has not made a ultimate resolution.
- Robinhood has no speedy plans to enter the stablecoin market.
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Revolut is contemplating launching its personal stablecoin as a part of its rising crypto product suite, in line with a Bloomberg report. The fintech large is reportedly evaluating its choices to launch a stablecoin, however has but to make a ultimate resolution on whether or not to proceed.
There had additionally been rumors that Robinhood would possibly launch a stablecoin, however a spokesperson for the corporate clarified that there are “no imminent plans” for such a launch. In the meantime, Revolut has neither confirmed nor denied its personal plans to subject a stablecoin.
Whereas Robinhood has dominated out any speedy motion on this area, Revolut stays non-committal. A spokesperson for Revolut acknowledged that the corporate plans to “additional develop” its crypto choices, although they didn’t specify whether or not a stablecoin will likely be a part of these plans.
This transfer comes at a time when the stablecoin market, dominated by Tether’s USDT, faces elevated regulatory scrutiny, significantly within the European Union.
The EU’s forthcoming Markets in Crypto-Property (MiCA) regulation, set to take full impact on the finish of 2024, is anticipated to reshape the stablecoin panorama. MiCA mandates that stablecoin issuers should maintain digital cash licenses and meet stricter regulatory requirements. Revolut’s potential entry into the market may problem Tether’s dominance, as the corporate seeks to navigate the brand new regulatory framework.
USDT presently controls greater than two-thirds of the $170 billion stablecoin market, with a circulation of almost $120 billion. Nonetheless, the upcoming MiCA guidelines may pressure exchanges within the EU to delist stablecoins that don’t adjust to these rules, posing a danger to Tether’s maintain available on the market.
As stablecoins achieve traction past crypto exchanges and into broader monetary functions, the profitability of issuing such tokens has caught the eye of main fintech gamers. Tether reported incomes $5.2 billion in revenue within the first half of 2024, largely from reserves backing its USDT token, highlighting the profitable potential of stablecoin issuance.
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