Robinhood and Revolut Explore Entry into $173 Billion Stablecoin Market

Robinhood and Revolut Explore Entry into $173 Billion Stablecoin Market

Leading fintech companies Robinhood Markets and Revolut are reportedly considering launching their own stablecoins to tap into the $173 billion stablecoin market, according to a Bloomberg report. However, neither firm has officially confirmed these plans, and sources indicate that they may ultimately decide against proceeding.

The potential move comes as the European Union approaches the finalization of its Markets in Crypto-Assets (MiCA) regulations, which aim to promote competition in the stablecoin sector and reduce Tether's dominance. Currently, Tether (USDT) holds a substantial market share, with circulation nearing $120 billion and accounting for approximately 69.14% of the stablecoin market, as reported by DefiLlama.

In July, Tether announced a record profit of $5.2 million for the first half of 2024 and reported a US Treasury portfolio valued at around $97.6 billion. However, Paolo Ardoino, CEO of Tether, recently voiced concerns that the forthcoming MiCA regulations could pose systemic risks to stablecoins and the banking sector. He mentioned that Tether is exploring "technology-based solutions" to align with EU regulations.

While Robinhood has stated it has "no imminent plans" to launch a stablecoin, a spokesperson for Revolut indicated that the company is looking to expand its crypto product offerings. Though it is evaluating the possibility of introducing a stablecoin, no official announcements have been made.

Additionally, Robinhood is investigating the potential for cryptocurrency futures trading in the US and Europe, with expectations to launch such offerings in the near future, although a company representative noted that there are no immediate plans in place.