British banking app Revolut Ltd is taking a big step into digital assets. The fintech company “reaffirmed” its commitment to the crypto industry in a blog post on Tuesday, announcing Revolut The launch of a crypto platform is notable because Revolut is first and foremost a traditional fintech company.
With over 40 million users, Revolut is one of the world's largest fintech companies, positioning the exchange to compete with big crypto incumbents like Coinbase and Binance. It aims to be the “go-to financial app for crypto beginners and pros.”
“We help our customers grow their wealth even more with fiat and cryptocurrencies,” said Leonid Vasilikov, Head of Cryptocurrency Exchange Products at Revolut. luck.
The platform will allow traders to buy and sell over 100 tokens, with fees ranging from zero to 0.09%. Investors will need to be Revolut customers to trade on the platform and will be able to seamlessly move funds in and out between Revolut X and Revolut retail accounts. This news follows the March launch of Revolut Ramp, which allows investors to buy cryptocurrencies directly in their wallets through a partnership with MetaMask.
“Revolut’s user base is young and interested in cryptocurrencies, and its profitability is closely tied to cryptocurrencies,” said Boaz Sobrado, a London-based fintech analyst. luck. In fact, Revolut first became profitable in 2021, at the peak of the last bull market. Sobrado said the high profit margins of crypto trading will boost Revolut's profitability.
Revolut has launched its UK cryptocurrency service following the recent introduction of rules by the UK regulator, the Financial Conduit Authority (FCA). The rules introduce a mandatory “24-hour cooling-off” period, forcing investors to wait a full day before completing crypto trades.
“These barriers to entry are insurmountable for small and offshore companies, but achievable for companies like Revolut and Karken. This means fewer competitors and greater opportunities. ,” Sobrado explained.
Revolut's renewed focus on cryptocurrencies is also partly explained by the positive outlook for the overall market. Bitcoin prices have risen more than 40% since the approval of 10 spot Bitcoin exchange-traded funds in the US on January 11, which have amassed more than $53 billion in assets, according to data from CoinGecko. Financial companies such as BlackRock and Fidelity began issuing crypto products, making them accessible to a wider range of investors compared to previous cycles and accelerating market growth.
But the launch of Revolut X stands in contrast to the company's exit from the US. In August 2023, the company suspended its cryptocurrency trading services for U.S. customers, citing the unclear regulatory situation and resulting uncertain market conditions. However, this only affects 1% of the user base.
Additionally, on Monday, Robinhood Markets, a fintech company that provides a retail trading platform, announced that it had received a Wells Notice from the SEC regarding its cryptocurrency business. This means the company faces imminent disciplinary action.
