Revolut Eyes Euro-Pegged Stablecoin Launch in 2025 Amid MiCA and USDT Competition

London-based digital banking giant Revolut is reportedly taking steps toward issuing its own stablecoin, according to sources familiar with the matter cited by Decrypt. The neobank, which serves over 55 million retail customers and 500,000 business clients across 160 countries, is engaging in preliminary discussions with at least one crypto-native company to facilitate this initiative. This move builds on Revolut’s expanding crypto portfolio, following the launch of its centralized cryptocurrency exchange, Revolut X, in the European Union in 2024.

Revolut’s Stablecoin Ambitions

This is not the first time Revolut has been reported to be considering a stablecoin. As early as September 2024, Revolut was said to be planning to issue a stablecoin, though the company did not respond to these reports. In December 2024, Sifted reported that sources indicated Revolut’s stablecoin plans faced regulatory obstacles. Revolut intends to launch a euro-pegged stablecoin, which would require compliance with the European Union’s new Markets in Crypto-Assets (MiCA) regulation, known for its stringent requirements for stablecoins. Questions have also been raised about how Revolut will compete with market leaders like USDT and USDC.

Revolut’s stablecoin plans have now resurfaced, possibly as a response to the significant shifts occurring in the global financial landscape. With the U.S. advancing the GENIUS Act to establish a comprehensive regulatory framework for stablecoins, and other jurisdictions like Hong Kong gradually introducing clear stablecoin regulations, stablecoins are increasingly becoming mainstream financial tools. Institutional interest in stablecoins has surged, with major financial institutions such as Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo also considering entering the stablecoin market.

Market Dynamics and Challenges

Revolut’s exploration of a stablecoin comes as the sector experiences significant growth, with the total stablecoin market capitalization reaching $251.75 billion in the first half of 2025, up from $205 billion at the start of the year.

The intense competition in the stablecoin market poses challenges for Revolut’s plans. Industry leaders like Tether (USDT) and Circle (USDC) dominate the market, holding approximately 86% of the total market cap, with USDT alone valued at $156 billion as of June 20. New entrants, such as Ripple’s RLUSD, launched in December 2024 with a focus on enterprise-grade cross-border payments, have already gained traction, reaching a market cap of around $415 million by June. Revolut will need to differentiate its offering, potentially leveraging its vast customer base and existing financial infrastructure to gain a foothold.

Additionally, the EU’s MiCA regulatory framework for cryptocurrencies, including stablecoins, may present operational challenges for Revolut. As a UK-based neobank, Revolut’s stablecoin business would likely be euro-pegged, requiring compliance with the EU’s MiCA framework. MiCA mandates that stablecoin issuers hold liquid reserves, such as cash or short-term Treasury bills, and provide transparent disclosures. In December 2024, reports circulated that Revolut’s stablecoin issuance plans were delayed due to the MiCA framework, potentially raising doubts about its ability to navigate the complex compliance environment.

Future Outlook

Revolut’s prior crypto ventures provide context for its stablecoin ambitions. The launch of Revolut X in 2024 marked its entry into centralized crypto trading, catering to its European customer base. The platform’s integration with existing banking services positions Revolut to potentially streamline stablecoin adoption for retail and business users, offering a seamless bridge between traditional finance and digital assets.

Revolut’s potential stablecoin could enhance its global payment and settlement capabilities, particularly for cross-border transactions, where stablecoins offer faster and cheaper alternatives to traditional methods. By issuing a euro-pegged stablecoin, Revolut could cater to its European clientele while navigating MiCA’s regulatory framework. However, competition from established players like USDT and USDC, combined with regulatory complexities, will require careful execution.

As Revolut moves forward, its ability to balance innovation with regulatory compliance will be critical. The neobank’s discussions with crypto-native partners suggest a collaborative approach, potentially tapping into blockchain expertise to ensure a robust offering.