Revolut sizes up stablecoin play like Ripple

A new entrant is expected to join the crypto stablecoin market, with Revolut reportedly planning to launch its own fiat-pegged token.

According to reports, the London-based firm has already started working on a stablecoin offering, but the timeline or launch date for the product is unknown. It is also unclear whether Revolut’s stablecoin will be pegged to the euro or the US dollar.

Revolut, a crypto-friendly fintech bank, has been supporting digital asset trading since at least 2017. The platform, which launched a crypto exchange for British professional investors in May, also received a UK banking license in June as part of its crypto expansion roadmap.

The stablecoin market, which was valued at $171 billion on September 18, appears to be the most popular sector of cryptocurrency after the Bitcoin (BTC) and Ethereum (ETH) ecosystems. Stablecoin issuers typically accumulate reserves filled with Treasury bills and bonds, earning interest and returns in the process. Tether (USDT), the largest stablecoin company, made $5.2 billion in profit in the first half of the year.

The promise of yield and looming stablecoin regulations in the U.S. have further fueled interest, with firms like Ripple announcing stablecoin plans and providers like BitGo and PayPal introducing fiat-linked tokens.

The European Union has enacted the Crypto Assets Markets Regulation, paving the way for issuers like Circle (USDC) to offer stablecoins across the bloc.

In the US, lawmakers like Patrick McHenry and Maxine Waters have made progress toward creating a comprehensive stablecoin framework. Bitwise CIO Matt Hougan opined that rules for fiat-pegged cryptocurrencies could have a greater impact on markets than crypto spot exchange-traded products.