In a significant move into the digital asset space, British banking app Revolut has unveiled Revolut X, a dedicated crypto trading platform for UK retail customers.
According to a Fortune Magazine report, the launch of the new platform signifies Revolut’s commitment to the crypto industry and positions the company to compete with major players like Coinbase and Binance.
Revolut Continues Crypto Push With New Platform
Interestingly, with a user base of over 40 million, Revolut is one of the world’s largest fintech companies. The new platform will reportedly enable traders to buy and sell over 100 tokens, with fees ranging from zero to 0.09%.
This announcement follows the launch of Revolut Ramp in March. Through a partnership with MetaMask, Revolut Ramp allows investors to purchase crypto directly within their wallets.
Leonid Bashlykov, the head of crypto exchange products at Revolut, emphasized the company’s goal of empowering customers to grow their wealth, whether in fiat or crypto.
The profitability of the UK-based fintech company has been closely associated with the crypto market. During the previous bull run, the company achieved profitability for the first time in 2021. The high margins of crypto trading are expected to contribute significantly to Revolut’s profitability in the future.
Contrasting Retreat From US Market
Revolut’s foray into the UK crypto market coincides with recent regulations introduced by the Financial Conduct Authority (FCA), the country’s regulatory agency.
These regulations include mandatory “24-hour cooling-off” periods that require investors to wait a full day before completing crypto transactions. While these barriers present challenges for smaller or offshore companies, they are manageable for established players like Revolut, according to Boaz Sobrado, a London fintech analyst. Sobrado explained:
These barriers to entry are unsurmountable for smaller or offshore companies, but achievable for companies like Revolut and Kraken. This means there are less competitors around, and hence a larger opportunity.
The firm’s renewed focus on crypto also reflects the positive outlook of the broader market. Since the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the US on January 11, which have accumulated over $53 billion in assets, Bitcoin’s price has risen by over 40%.
Moreover, the entry of financial giants like BlackRock and Fidelity into the crypto space has accelerated market growth by expanding access to a broader pool of investors compared to previous cycles.
It is worth noting that the launch of the crypto exchange services in the UK contrasts with the company’s retreat from the US market.
In August 2023, Revolut discontinued its crypto trading services for US customers, citing an unclear regulatory landscape and uncertain market conditions. However, this decision only affected a small portion, approximately 1%, of its user base.
Featured image from Shutterstock, chart from TradingView.com