Robinhood, Revolut eye entry into the stablecoin market — Report

Fintech giants Robinhood and Revolut are eyeing nan stablecoin market, arsenic caller regulations successful Europe committedness to present regulatory clarity and effect crypto-native companies’ marketplace share. 

According to a Sept. 26 Bloomberg study citing unnamed sources, some Robinhood and Revolut are considering issuing their ain stablecoins arsenic nan manufacture continues to expand.

The stablecoin marketplace has been mostly dominated by Tether (USDT). The stablecoin issuer benefited from nan broader macroeconomic scenery and crypto marketplace turbulence complete nan past 2 years, including banking crises and regulatory crackdowns connected firms successful nan United States.

USDT, which is pegged to nan US dollar, gained much than 20% marketplace stock during nan play and now controls complete 75% of nan full stablecoin market.

Tether’s marketplace stock maturation has translated into much revenue. The stablecoin issuer reported record-breaking profits of $5.2 billion successful nan first half of 2024, arsenic good arsenic a larger stockpile of US authorities bonds to backmost its reserves. According to Bloomberg, this business exemplary is encouraging much players to participate nan stablecoin market. 

Stablecoins marketplace capitalization. Source: DefiLlama

Despite Bloomberg’s reporting, Robinhood and Revolut person not confirmed whether they scheme to participate nan stablecoin arena.  

Related: Societe Generale Forge partners pinch Bitpanda for euro stablecoin up of MiCA

MiCA to style nan stablecoin industry 

The European Union’s Markets successful Crypto-Assets (MiCA) regulation, introduced successful 2023, will importantly effect nan stablecoin market. The MiCA implementation connected stablecoins was divided into 2 phases. 

The first, which ended connected June 30, imposed rules connected reserve requirements, transparency, and transaction measurement caps, starring immoderate exchanges for illustration Binance and Kraken to commencement reviewing stablecoin offerings up of nan caller rules.

The 2nd shape takes effect connected Dec. 30 and applies to crypto-asset work providers, bringing broader regulations for exchanges, wallets, and different work companies.

Under nan regulation, stablecoins — besides referred to arsenic Asset-Referenced Tokens aliases Electronic Money Tokens — look strict rules, specified arsenic regular transaction measurement caps of $200 cardinal for payments.

Tether’s CEO, Paolo Ardoino, has criticized nan European regulation, citing a request that 60% of stablecoin reserves beryllium held successful rate deposits astatine aggregate banks.

“Very fewer banks judge this type of business successful Europe. It’s already very difficult to get conscionable one!” Ardoino noted successful an interview.

According to Ardoino, nan institution does not intend to beryllium regulated nether MiCA.