Leading fintech firms Robinhood Markets and Revolut are reportedly seeking to enter the $173 billion stablecoin market, Bloomberg reported. Both companies are considering issuing their own stablecoins but haven’t confirmed the move.
Sources close to the matter told Bloomberg that Robinhood and Revolut could “still opt not to proceed” from launching stablecoins.
The move comes as the European Union edges closer to fully enacting its Markets in Crypto-Assets (MiCA) regulations this year.
The move aims to loosen Tether’s grip on the rapidly moving stablecoin sector. Bloomberg report noted that the business model is encouraging more players to enter the market.
Tether (USDT) circulation has grown to almost $120 billion, dominating more than two-thirds of the stablecoin market, the report added. Per DefiLlama, Tether accounts for 69.14% of stablecoin dominance.
In July, Tether reported a record-breaking $5.2 million profit in first half of 2024. Further, the stablecoin’s US Treasury portfolio is worth approximately $97.6 billion.
Further, Paolo Ardoino, CEO of Tether, recently raised concerns that the MiCA regulation poses a systemic risk to stablecoins and the broader banking system. He told the publication that the company is working on a “technology-based solution” to serve the EU market.
Robinhood, Revolut Haven’t Confirmed Stablecoin Move
Although sources note that both fintech giants Robinhood and Revolut might explore stablecoins, a Robinhood spokesperson said it has “no imminent plans to launch this offering.”
On the other hand, a Revolut executive said that the firm is planning to “further grow” its crypto product suite. The fintech firm is reportedly evaluating options to release a stablecoin but has yet to make any announcements.
As reported in July, Robinhood is exploring the possibility of cryptocurrency futures trading in the US and Europe. The platform said that it would introduce futures trading “in the coming months.”
However, a spokesperson from Robinhood said that the company has no immediate plans for such offerings.
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