Leading fintech firms Robinhood Markets and Revolut are reportedly looking to enter the 173 billion USD stablecoin market, Bloomberg reports. Both companies are considering issuing their own stablecoins but have not yet confirmed the move.
Sources familiar with the matter told Bloomberg that Robinhood and Revolut “may still choose not to move forward” with launching stablecoins.
The move comes as the European Union is close to fully enacting its Markets in Crypto-Assets (MiCA) regulations this year.
The move aims to loosen Tether’s hold on the fast-developing stablecoin sector, with a business model encouraging more players to enter the market, according to a report by Bloomberg.
Tether’s ( USDT ) circulating supply has grown to nearly 120 billion USD and dominates more than two-thirds of the stablecoin market, the report added. According to DefiLlama, Tether accounts for 69.14% of stablecoin dominance.
In July, Tether reported a record-breaking profit of 5.2 million USD in the first half of 2024. In addition, the stablecoin’s portfolio in the U.S. Treasury is worth around 97.6 billion USD.
Additionally, Tether CEO Paolo Ardoino recently expressed concerns that the MiCA regulation poses a systemic risk to stablecoins and the banking system in general. He told the publication that the company is working on a “technology-based solution” to serve the EU market.
Robinhood and Revolut have not yet confirmed stablecoin entry
Although sources indicate that the two fintech giants Robinhood and Revolut may explore stablecoins, a Robinhood spokesperson said there are “no immediate plans to launch this offering.”
On the other hand, a Revolut executive said that the company plans to “continue to expand” its crypto product range. The fintech company is reportedly exploring options to launch a stablecoin but has not made any announcement yet.
As reported in July, Robinhood is exploring the possibility of trading cryptocurrency futures in the US and Europe. The platform said it would launch futures trading “in the coming months.”
However, a Robinhood spokesperson said the company has no immediate plans for such offerings.
