Revolut Unleashes Euro Stablecoin Power, Disrupts Traditional Banking

Revolut has launched its own euro stablecoin, EURR, to its 80 million customers. This move marks a significant shift in the stablecoin market, where companies are no longer relying on third-party platforms but instead controlling the distribution of these assets directly.

The fintech giant issued EURR through Bridge Building S.A., a Luxembourg-based entity owned by Stripe, which holds necessary licenses and supervisions from the Commission de Surveillance du Secteur Financier. Revolut acts as the distributor through its CySEC-licensed subsidiary, with reserves held in segregated accounts at regulated banks.

Revolut's move is seen as a response to the MiCA Title V regulation, which prohibits licensed crypto-asset service providers from offering non-authorized e-money tokens. Tether has not sought MiCA authorization and thus became a liability for regulated entities.

The euro stablecoin market remains relatively small, with a total market capitalization of approximately €650 million. Revolut's massive user base and licensed banking infrastructure will play a crucial role in standardizing the euro on-chain, connecting 80 million customers directly to on-chain finance.