Revolut, a prominent neobank serving 55 million retail and 500,000 business customers worldwide, is exploring the launch of its own stablecoin, as revealed by sources familiar with the matter. This development aligns with a wider trend among major companies, including Amazon and Walmart, that are considering similar initiatives amid evolving regulatory frameworks. Revolut previously launched a centralized crypto offering in 2024 and is now looking to expand its cryptocurrency services further. The neobank is in talks with at least one crypto-native company for this venture. Stablecoins, which typically peg their value to stable currencies like the U.S. dollar, offer significant advantages for payments due to lower fees and faster transaction speeds compared to traditional financial systems. The potential for earning yields on the reserves backing stablecoins is another incentive for financial institutions to engage in this space. As legislation surrounding stablecoins gains traction in the U.S., with potential bipartisan support, many industry players are positioned to enter the market, increasing competition against existing stablecoin issuers like Tether and Circle.

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