Revolut Clears Path to Sterling Stablecoin with FCA Regulatory Sandbox Selection
Revolut's entry into the UK's Financial Conduct Authority (FCA) stablecoins regulatory sandbox is a significant milestone for the fintech company. The selection puts Revolut ahead of most other UK fintechs in the queue to issue a regulated sterling token once the rulebook is finalized.
The FCA chose four firms, including Revolut, from twenty applicants to test a sterling-pegged stablecoin. Revolut has secured full UK banking licenses and holds an EU banking license, making it eligible to issue its own coin. This move allows Revolut to stop renting payment processing services and start owning the infrastructure.
The company's financial growth is evident in its $6 billion revenue for 2025, a 50% increase from 2024. The customer base has grown to 68.3 million, with wealth and crypto revenue surging. Revolut's decision to issue its own stablecoin is likely driven by the desire to capture more of this growth.
The Bank of England has softened its original proposals for sterling stablecoins, replacing per-person holding caps with a £40 billion issuance guardrail and lowering the unremunerated reserve requirement from 40% to 30%. This shift makes it easier for Revolut to issue its own coin, which will compete directly with dollar-denominated stablecoins used for cross-border settlement and merchant payouts.