Revolut has discontinued its plans to buy a US bank and is now focusing on acquiring a standalone banking licence for its US expansion strategy.
Previously, the fintech company based in London had considered purchasing an existing chartered US lender to gain nationwide banking access more swiftly. This route was expected to enable Revolut to operate across all 50 states without building a bank from scratch. Nevertheless, they concluded that such a deal would present regulatory and operational challenges.
One key issue was the potential need for physical branches following an acquisition, which could conflict with Revolut’s digital-first business model. According to sources cited by the Financial Times, the expected time frame for this acquisition route was longer than initially anticipated.
Transition to a New Banking Licence
As an alternative, Revolut is now exploring applying for a de novo banking licence from the Office of the Comptroller of the Currency (OCC). A de novo licence is issued to newly formed banks. Company officials believe this approach could offer a clearer and possibly quicker regulatory path compared to acquiring an existing institution, especially given recent changes at the OCC.
Revolut has stated that the US remains crucial for its long-term growth plans and that several regulatory options are still under consideration. At present, no final decision has been made regarding the timing or specifics of a licensing application.
The US regulatory landscape has traditionally been complex, particularly for fintech and crypto-focused businesses. However, recent approvals for companies such as Circle Internet and Ripple have signaled a more favorable environment for digital finance providers.
In parallel with its plans to enter the US market, Revolut is also advancing its cryptocurrency operations internationally. The company recently teamed up with Trust Wallet to facilitate instant crypto purchases for users in the European Union and has secured authorization under the EU’s Markets in Crypto-Assets (MiCA) framework via Cyprus, enabling it to offer crypto services across the European Economic Area.
