Retail trading platform Robinhood and digital banking app Revolut are reportedly looking at the possibility of issuing their own stablecoin.
Citing people familiar with the matter, Bloomberg reports that the two financial technology giants are considering joining the $170 billion stablecoin market but are still opting not to proceed.
A Robinhood spokesperson says the company does not have imminent plans to launch the offering. A Revolut spokesperson says the plan is to grow the company’s crypto product suite but did not confirm a future stablecoin.
The report comes as stricter regulations in Europe threaten to weaken USDT issuer Tether’s dominance in the stablecoin sector.
The European Union will enforce the Markets in Crypto Assets (MiCA) regulations by the end of the year. The new rules could compel crypto exchanges operating in the region to delist stablecoins from issuers like Tether that failed to secure the required electronic money license.
Financial companies have been launching their own stablecoins as the asset becomes more widely used for payments. USDT, for instance, allows Russian companies to settle cross-border transactions amid banking sanctions.
Nearly half of the crypto users in emerging markets, which include India, Brazil and Nigeria, also buy stablecoin to save money in dollars.
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