Revolut Paves Way for Regulated Sterling Stablecoin with FCA Selection
Revolut, Europe's most valuable private fintech, has been selected by the UK's Financial Conduct Authority (FCA) for its stablecoins regulatory sandbox. This move is significant as it paves the way for Revolut to issue a regulated sterling token, putting it ahead of other UK fintechs in the queue.
The FCA's selection was made in February, and Revolut has since secured a full UK banking license, holds an EU banking license, and has filed for a US bank charter. This regulatory groundwork is essential to issue and back its own coin.
Revolut's entry into the stablecoins sandbox is not just about testing a sterling-pegged stablecoin but also about becoming a settlement owner rather than renting payment rails from others. The company believes that the next decade of payments revenue will come from controlling the settlement layer, which it currently doesn't control.