Revolut to launch Binance-like crypto token
London-based neobank Revolut is reportedly seeking a greenlight from the UK regulators to release its own crypto token.
Citing people familiar with the matter, CoinDesk reported about the surprise initiative which would allow Revolut users to earn a “token’ type of thing, similar to Wirex and Nexo.”
The details of the exact plan were not immediately clear and that it’s possible it may not materialize. However, two sources told the publication that Revolut’s token would initially focus on Europe and other non-US markets for the time being.
They also ruled out the possibility of launching a stablecoin-like token and, instead, drew comparisons to Binance’s BNB. This implies that the new token is designed to help users access extra features and save on fees when they make payments on Revolut app.
Furthermore, Revolut’s token would represent more than an investment opportunity, said on source, adding that owning it unlocks a plethora of benefits for users including discounts, rewards, and premium access.
As for the release timing, sources indicated that the roll-out for use on Revolut’s payments and trading app is subject to permission from the United Kingdom’s regulators.
Revolut began offering the ability to buy and sell cryptocurrencies four years ago, but it was only this year when it decided to expand its crypto offering considerably, increasing it to 53 supported tokens.
The recent news comes on the heels of Revolut’s announcement that it plans to roll out its commission-free stock trading platform in the United States.
The fintech unicorn has been operational in the US retail market since 2020 and is now approved as a licensed broker-dealer under the brand “Revolut Securities”. To further sweeten its offering, the broker plans to introduce a fractional trading feature as a way to lower the bar for young investors to as little as $1.
Revolut, which offers banking and trading services through an app, raised $800 million in a funding round that valued the firm at $33 billion. This valuation was a sixfold increase compared to nearly $5.5 billion the UK firm was worth in 2020.
Revolut has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers.
The new business roll-out comes as the market for Fintech firms offering alternatives to traditional banks has become fiercely competitive. Revolut is already going up against other established rivals, such as Stripe, which recently expanded its portfolio of partner banks that have signed on to offer co-branded banking services.
