After Ripple and BitGo, Revolut UK Set to Launch Stablecoin

After the announcement of Ripple and BitGo, Revolut UK has been revealed to be planning to launch its stablecoin, according to a report by CoinDesk.

This news comes shortly after Ripple Lab and BitGo announced their intention to launch stablecoins to rival Tether, the leading stablecoin with a market capitalization of $118 billion, and USDC, with a market capitalization of $8 billion according to CoinMarketCap.

The launch of more stablecoins may seem like a good development, but many financial institutions are far behind Tether (USDT) and USDC. For instance, PayPal USD (PUSD) has a market cap of $733 million, with a daily volume of $39 million, compared to USDT’s $73 billion daily trading volume.

Revolut, joining the companies launching stablecoins, could potentially see a boost in usage. With a global user base of 45 million and little presence in the US, Revolut’s usage may be hindered there, especially after halting its crypto services in 2023 due to regulatory hurdles. It remains unclear whether the stablecoin will be launched in the US, but given the unclear regulations regarding cryptocurrency, it seems unlikely.

In the UK, however, Revolut X has been launched as a cryptocurrency trading platform for UK citizens. Despite its success, Revolut has been criticized in the past for being lenient with KYC procedures, which has led to hacking incidents. A UK-based business, for instance, almost collapsed after £40,000 was wiped from its account, with Revolut accused of refusing to reimburse the customer. Around the same time, consumer advocacy group Which? warned users to be wary of the platform, reporting that over £200,000 was stolen by fraudsters from various users.

In a separate report, Financial Times stated that Revolut’s payment system in the US allowed criminals to steal over $20 million in 2022.

Meanwhile, Revolut is preparing to launch its business in India by 2025. Although it set up operations in India in 2021, it has yet to receive approval from the authorities.