Digital banking firm Revolut is reportedly exploring the acquisition of a U.S. bank. The move would allow the company to accelerate its efforts to secure an American banking license, a key step in expanding its services in the U.S. market.
Revolut, a digital banking giant, is purportedly investigating the acquisition of a US bank to expedite its introduction into the American market.
The action would enable the UK’s largest fintech to circumvent the frequently protracted process of obtaining a banking charter from the ground up.
The Financial Times reported on Tuesday that the company is contemplating the acquisition of a nationally chartered bank with a license. Revolut could lend in the United States more rapidly through an acquisition than by independently applying for a banking charter, which can take years.
Additionally, the report indicates that the organization is contemplating obtaining its banking license instead of acquiring one.
Revolut had not responded to Cryptonews’ request for comment by the time of press.
Revolut’s License Bid Potentially Benefits from Trump-Era Policies
The fintech, which has 60 million customers worldwide, has been exploring methods to enhance its presence in the United States, one of the world’s greatest financial markets.
At a time when UK fintechs are experiencing slower domestic development, obtaining a banking license in the United States would grant them access to a vast base of customers and deposits.
The FT stated that the Office of the Comptroller of the Currency has the potential to expedite the approval process for bank charters due to US President Donald Trump’s deregulatory agenda. Nevertheless, Revolut is currently in the process of determining the most effective course of action.
Revolut pursues expansion abroad, considering the Middle East and Latin America
The FT reported this week that the company is discussing a $1 billion transaction, which would provide the fintech with new capital and value it at approximately $65 billion. A portion of the funding would be allocated to the organization’s global expansion.
Revolut has contemplated comparable strategies in other regions, such as acquiring a Middle Eastern bank. As part of its expansion strategy, it acquired Cetelem, an Argentine bank, from BNP Paribas last month.
Although Revolut has banking licenses in Lithuania and Mexico, which enable it to operate throughout the European Union, it has not yet obtained one in the United Kingdom. The application was approved by regulators last year; however, restrictive measures have been implemented that continue to restrict its lending activities.
US Banking Approval Could Pave Way for Digital Asset Services
The company’s international aspirations surpass conventional banking. Revolut, previously providing cryptocurrency trading services in the United Kingdom and the European Economic Area, has resumed limited cryptocurrency operations in Hungary this week. Hungary implemented a new law this summer that mandated all crypto service providers’ possession of a domestic license, which resulted in a regulatory moratorium.
Due to regulatory uncertainty, Revolut suspended its crypto services in the United States in October 2023.
It is pursuing an American banking license, which, if granted, could establish the foundation for a broader range of products, such as digital asset services.
According to industry analysts, obtaining a banking license in the United States would be a significant achievement for Revolut, enabling the company to compete with its American fintech competitors.
