Key Takeaways:
- Robinhood and Revolut are considering stablecoin issuance, influenced by the EU’s MiCA regulations.
- Robinhood stated it has no immediate plans, while Revolut has yet to confirm its strategy.
- Tether dominates the stablecoin market, holding over 75% of the market share, driven by economic uncertainty and U.S. bond-backed reserves.
Robinhood and Revolut are reportedly considering entering the stablecoin market as digital currencies grow and new European regulations emerge.
These fintech companies are exploring stablecoin issuance, driven by the European Union’s Markets in Crypto-Assets (MiCA) regulation, which seeks to standardize the crypto industry with clearer guidelines for reserve requirements and transaction limits.
Companies from Robinhood to Revolut are considering launching stablecoins, betting that stricter regulations in Europe and elsewhere will finally loosen Tether’s grip on the sector https://t.co/kkrqufg6EK
— Bloomberg (@business) September 26, 2024
However, Robinhood clarified that it has no immediate plans to launch a stablecoin, while Revolut has not confirmed its intentions.
UPDATE: ROBINHOOD SPOKESPERSON SAID 'NO IMMINENT PLANS' TO LAUNCH A STABLECOIN AND REVOLUT NEITHER CONFIRMS NOR DENIES A STABLECOIN IN THE FUTURE https://t.co/fR5wwGZgJu
— BSCN Headlines (@BSCNheadlines) September 26, 2024
The stablecoin market is currently dominated by Tether’s USDt, which controls over 75% of the sector, boosted by high demand amid economic uncertainty.
In 2024, Tether reported $5.2 billion in profits due to increased U.S. government bonds backing its reserves.
MiCA’s phased implementation, with more stringent rules set for December 2024, has influenced the strategies of major exchanges like Binance and Kraken.
Meanwhile, Circle recently introduced its Euro-backed stablecoin, EURC, complying with MiCA regulations, despite criticisms from Tether’s CEO regarding challenges in securing European banking partners.
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