Retail trading platform Robinhood and digital banking app Revolut are reportedly exploring the possibility of issuing their own stablecoins.
Bloomberg quotes people familiar with the matter reports that the two financial technology giants are considering joining the $170 billion stablecoin market.
A Robinhood spokesperson tells Bloomberg that the company has no plans to launch the offering. A Revolut spokesperson says the plan is to grow the company’s crypto product suite, but they haven’t explicitly mentioned a future stablecoin.
The report comes as stricter regulation in Europe threatens to weaken USDT issuer Tether’s dominance in the stablecoin sector.
The European Union will enforce Markets in Crypto Assets (MiCA) regulations by the end of the year. The new rules could force crypto exchanges operating in the region to remove stablecoins from issuers like Tether that failed to obtain the required electronic money license.
Financial companies have launched their own stablecoins as the asset becomes more widely used for payments. For example, USDT allows Russian companies to settle cross-border transactions amid banking sanctions.
Nearly half of crypto users in emerging markets, including India, Brazil and Nigeria, also buy stablecoins to save money in dollars.
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