Bloomberg reported that Robinhood Markets and Revolut, two prominent fintech firms, purportedly attempt to enter the $173 billion stablecoin market. Both organizations are contemplating issuing their stablecoin; however, they have yet to corroborate the decision.
Bloomberg was informed by sources who were aware that Robinhood and Revolut may still choose not to proceed with the launch of stablecoins.
The European Union is inching closer to fully implementing its Markets in Crypto-Assets (MiCA) regulations this year, which is the reason for the move.
The action aims to lessen Tether’s influence in the stablecoin industry, which has evolved quickly. According to the Bloomberg report, the business model fosters additional competitors’ entry into the market.
According to the report, Tether (USDT) has a circulation of nearly $120 billion, which accounts for more than two-thirds of the stablecoin market. Tether is responsible for 69.14% of stablecoin dominance, according to DefiLlama.
Tether reported a $5.2 million profit in the first half of 2024, a record-breaking figure, in July. The stablecoin’s US Treasury portfolio is estimated to be worth approximately $97.6 billion.
Additionally, Paolo Ardoino, the CEO of Tether, recently expressed apprehension regarding the potential systemic risk to stablecoins and the broader banking system posed by the MiCA regulation.
He informed the publication that the company is developing a “technology-based solution” to cater to the EU market.
Stablecoin Moves Have Not Been Confirmed by Robinhood and Revolut
Robinhood’s spokesperson stated that the company has “no imminent plans” to introduce stablecoins, despite reports that both fintech giants, Revolut and Robinhood, may investigate stablecoins.
Conversely, a Revolut executive stated that the organization intends to “extend” its crypto product line. According to reports, the fintech company is assessing potential stablecoin releases but has not yet made any public statements.
Robinhood is investigating the feasibility of cryptocurrency futures trading in the United States and Europe, as reported in July. The platform announced that it would implement futures trading “shortly.”
Nevertheless, a Robinhood spokesperson stated that the company does not intend to introduce such offerings.