Fintech companies Robinhood and Revolut are exploring the possibility of launching their own stablecoins. This move is influenced by rapid growth, spurred by European regulatory changes.
A report from anonymous sources from Bloomberg suggests that both companies are looking to enter the expanding stablecoin market. This sector is currently dominated by Tether’s USDT, which holds over 75% of the market after benefiting from the economic landscape and regulatory challenges in the U.S.
Tether’s success has been driven by banking crises and increased regulatory scrutiny, resulting in the stablecoin issuer reporting $5.2 billion in profits for the first half of 2024. Tether’s business model is now motivating more players to join the stablecoin market.
Despite Bloomberg’s report, neither Robinhood nor Revolut have confirmed their plans to issue stablecoins.
See Related: Robinhood’s Connect Allows Users To Access DeFi(Opens in a new browser tab)
The Stablecoin Market This Year
In August, PayPal launched its U.S. dollar-backed stablecoin, PYUSD, on Ethereum. This stablecoin offers fast payments and conversions between digital and fiat currencies.
Earlier this month, Sui Network introduced Circle’s USDC stablecoin. It also launched the Cross-Chain Transfer Protocol (CCTP) to enhance liquidity and enable smoother cross-chain transfers. This marks Sui Network’s first integration of Circle’s technology.
In July, Tron founder Justin Sun announced a gas-free stablecoin. This new stablecoin will support free peer-to-peer transfers on the Tron blockchain. There are plans for future compatibility with Ethereum.
