Revolut has reportedly discussed developing a stablecoin as regulatory changes gain momentum in the digital currency sector.

According to decrypt.co, such discussions have involved at least one firm in the cryptocurrency space, but Revolut has yet to confirm any plans officially.

The move aligns with broader interest from both financial institutions and large corporations in entering the stablecoin market. Following recent legislative developments, including the passage of the GENIUS Act by the US Senate, momentum for digital currencies tied to fiat value is on the rise. This act seeks to establish a legal framework for stablecoin issuance.

Stablecoins and Their Appeal

Financial institutions and large corporations are increasingly exploring how stablecoins can enhance payment systems. These tokens, often pegged to the US dollar and backed by reserve assets, offer faster settlement times and lower transaction fees. They also provide opportunities for issuers to earn returns on their collateral reserves.

While Circle and Tether currently dominate the USD 251 billion stablecoin market, traditional financial institutions like Bank of America, JP Morgan, Citigroup, and Wells Fargo have expressed interest in launching their own digital dollar equivalents if regulatory clarity is achieved. The Wall Street Journal reports that retail and travel sectors are also considering similar moves.

Revolut’s Expansion into Cryptocurrency

Revolut, based in London, ventured into the cryptocurrency space with the launch of Revolut X in 2024, providing crypto trading services across the European Union. The development of a proprietary stablecoin would further expand their presence, though no formal timeline or product details have been shared publicly.

Some lawmakers express concerns about large corporations’ growing involvement in digital asset issuance, citing potential risks to data privacy and market competition. A US senator highlighted these issues in response to reports of stablecoin plans from companies such as Amazon and Walmart, noting the potential for tracking consumer behavior while pushing smaller players aside.