In 2019, Revolut customers owned more than $ 120 million in cryptocurrencies
2 min readRevolut seems to be doing well in the crypto business. The European fintech unicorn is prospering. At the end of 2019, its customers owned $ 121 million in crypto assets. The company disclosed this in its 2019 annual report published on Monday.
Revolut customers held 152% more cryptocurrencies than last year
A spokesman for Revolut confirmed the published data. He added that the values from 2019 are 152% higher than last year, when customers held crypto assets worth $ 48 million.
It is not clear which cryptocurrencies Revolut customers held the most. The spokesman declined to provide details. Through its investment application, Revolut currently supports six cryptocurrencies – Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC) and Stellar Lumens (XLM).
It remains unclear what value Revolut customers currently hold in crypto assets, the spokesman declined to provide data for 2020. However, the company appears to be doing well in the new year, as Revolut noted in the annual report: “COVID-19 positively in the short term affected some products, such as crypto trading.”
Intangible assets
Revolut registers the crypto of customers’ assets as “intangible assets” according to U.K. accounting standards. “Cryptocurrencies are reported at fair value using a revaluation model. An impairment loss for assets that was not previously remeasured is recognized in profit or loss, ”Revolut said in its annual report.
While Revolut offers customers the opportunity to purchase cryptocurrencies through its application, the company itself owns the crypto as well, as stated in the annual report. “Cryptocurrencies are held in a trust with a qualified custody service, with a wallet provider or in one of two crypto exchanges and can be in either a “hot”(connected to the Internet) or a “cold”(not connected to the Internet) wallet. “Revolut takes the security of the cryptocurrency very seriously and has robust systems that prevent unauthorized access,”the company said in a report.
Revolut was launched in 2015 and began offering crypto services in December 2017, when Bitcoin was at an all-time high of $ 20,000. Revolut currently has almost 13 million retail customers based on the annual report.
Revolut recently stated that its active crypto clientele in Europe is over 1 million. Last month, the company also launched services in the US through a partnership with Paxos Crypto Brokerage. Several US fintech companies already provide crypto services, including Square’s Cash App and SoFi. PayPal is also reportedly working with Paxos to introduce such a service.
Although Revolut’s crypto business seems to be doing well, the company remains loss-making. The company’s net loss tripled to $ 139.6 million in 2019 from $ 42.7 million in 2018. This was despite Revolut’s revenue in 2019, which increased by 180% to $ 221.6 million compared to $ 75.6 million. , $ 7 million from 2018.
Image source: Business Cloud
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