Revolut Enters Euro Stablecoin Market Amid Regulatory Uncertainty

Revolut is launching a euro-backed stablecoin into a market that European regulation has inadvertently consolidated around a US-regulated company. The neobank, which holds a full UK banking licence and an EU banking licence, among others, will issue the token despite the regulatory backdrop that led to Circle's USDC becoming the dominant player in Europe.

The MiCA regulation requires major stablecoin issuers to hold at least 60% of reserves in EU bank deposits. However, this rule was designed to keep euro stablecoins anchored in Europe and has instead delivered the European market to a US-regulated company whose reserves sit largely in US Treasury instruments.

Revolut's entry into the market comes as the European Commission is consulting on revising the MiCA rules, with a review report not due until mid-2027. This gap has given Revolut an opportunity to establish itself in the market before any potential changes take effect.