Robinhood and Revolut are debating joining the expanding stablecoin market
As the stablecoin market develops, leading fintech firms Robinhood and Revolut apparently want to make a big impression. More exact rules from recent European legislative amendments might affect the environment of the market for companies with a concentration on cryptocurrencies.
According to a recent survey, both businesses are considering starting their own stablecoins in order to seize this expanding market. Currently the most dominating stablecoin is Tether’s USDt, which gains greatly from recent market swings, financial problems, and government attention directed on other US companies. USDt’s market share has risen to over 75% during the previous two years, producing significant earnings and strengthening its reserves with American government bonds.
Though rumors abound, officials from Robinhood and Revolut have not formally acknowledged any intentions for stablecoin distribution. With its first phase now enforcing restrictions on reserve requirements and transaction limitations, the European Union’s new Markets in Crypto-Assets (MiCA) law should change the scene for stablecoins. Soon a second phase will start, tightening rules even further for crypto service providers.
Stablecoins, classified as “asset-referenced tokens,” follow strict rules under the MiCA laws including daily transaction volume limitations of $200 million. Although Tether’s CEO has voiced questions regarding these criteria and their viability, this legislative framework seeks to provide the stablecoin market a more organized surroundings.
Originally recognized for transforming stock trading, Robinhood has also entered the crypto market and makes major income from its digital asset products. It lately claimed a significant rise in the income from cryptocurrency transactions. Tether’s hegemony can be challenged by the company’s possible participation into the stablecoin market.
Revolut is apparently looking into stablecoin possibilities in accordance with its aim to increase the range of cryptocurrencies it offers, but no public pronouncements. Both businesses are closely watching the changing regulatory environment, which may open stablecoin industry new prospects.
