Key Points:
Read more: Robinhood Crypto Ban Leads Platform to $3.9 Million Fine
According to sources who asked not to be identified and who was cited in a Bloomberg report, Robinhood and Revolut are considering issuing stablecoins of their own, though they may never actually launch such a product.
These stablecoins strive to maintain a constant value and have become a juggernaut in the crypto landscape, led by Tether’s USDT which outruns more than two-thirds of the players.
At present, USDT circulates close to $120 billion, and the closest rival, USDC, has $36 billion, per CoinGecko data. Many upstarts have looked at taking on USDT with few having gained serious steam or momentum.
The potential launches from Robinhood and Revolut also come amidst regulatory ambiguity in the European Union. New rules under the Markets in Crypto-Assets framework are supposed to take full effect before the end of 2024.
These regulations require stablecoin issuers to have e-money licenses and also enact strict reserve requirements. Tether, the largest stablecoin issuer, doesn’t have the EU license it needs but also won’t find it easy to follow the new rules. Circle, a USDC issuer, is already in possession of the necessary license and will be well-positioned for new changes in regulation.
Still, in spite of such regulatory pressures, the usage of stablecoins is growing outside of crypto exchanges. As a trend in emerging markets, stablecoin usage for payments and savings in U.S. dollars continues to increase in countries like Brazil, Turkey, and Nigeria. Most notably, Russian companies have turned to USDT as a way to circumvent sanctions and make international payments.
While Robinhood and Revolut are playing cautiously, the lucrative financial incentives that come with stablecoins remain hard to ignore. For the first half of 2024 alone, Tether reportedly pulled profits of $5.2 billion from its reserve assets
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Best Cryptos to Buy in December 2024: Qubetics ($TICS) presale explodes, Ethereum (ETH) eyes a…
Palo Alto, California, 21st November 2024, Chainwire
Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…
London, United Kingdom, 21st November 2024, Chainwire
The move will see developers utilize USDC on Aptos in creating dApps on a wide…
Abu Dhabi, UAE, 21st November 2024, Chainwire
This website uses cookies.