Revolut is eyeing a fiat-pegged token of its own, which might mean a new player in the stablecoin market for cryptocurrencies.
The London-based company has reportedly started working on its stablecoin solution. However, it is unclear when the product will be released.
Furthermore, it’s unclear if Revolut’s stablecoin would be based on the US dollar or the euro. Digital asset trading has been supported by fintech bank Revolut since at least 2017.
As part of its plan for crypto development, the site debuted a cryptocurrency exchange for British professional investors in May and secured a banking license in the United Kingdom in June.
Stablecoins, valued at $171 billion on September 18, appear to be the trendiest area of cryptocurrency after Ethereum and Bitcoin.
Issuers of stablecoins frequently built up reserves of Treasury bills and bonds, earning yield and interest in the process.
The biggest stablecoin corporation, Tether, made $5.2 billion in profits over the first half of the year. The prospect of yield and impending stablecoin laws in the United States has further piqued interest.
Companies like Ripple have revealed stablecoin ambitions, while BitGo and PayPal have issued fiat-tied tokens.
Stablecoin providers like Circle are now permitted to provide their products throughout the European Union because of the historic Markets in Crypto-Assets Regulation that the EU implemented.
Legislators like Maxine Waters and Patrick McHenry have advanced the creation of a thorough stablecoin framework in the United States.
According to Bitwise CIO Matt Hougan, regulations governing fiat-pegged cryptocurrencies may affect the market more than those governing crypto spot exchange-traded vehicles.
