Bloomberg: Robinhood and Revolut may issue their own stablecoins
Fintech giants Robinhood and Revolt are reportedly considering entering the stablecoin market. This is in light of new European regulations that are believed to shed much-needed light on the sector.
Both Robinhood and Revolt are reportedly considering issuing their own stablecoins to participate in the increasingly attractive market dominated by Tether’s USDT, according to a report from Bloomberg. USDT currently boasts a market capitalization of over $119 billion.
Tether has benefited greatly from the turbulent macroeconomic environment and cryptocurrency market volatility over the past few years. The banking crisis, along with a regulatory crackdown on US companies, has contributed to USDT’s impressive growth, and it now controls more than 75% of the total market.
Tether also announced record profits of $5.2 billion in the first half of 2024. It also increased its reserves by buying up even more U.S. government bonds. The attractive business model has resulted in more companies joining the stablecoin market, but neither Robinhood nor Revolt have confirmed this report.
In 2023, MiCA (European Union Cryptoassets Market Regulation) will dramatically change the way stablecoins are created, sold, and traded. The implementation of MiCA was implemented in two phases, with the first phase expiring on June 30, 2024. The first phase will introduce regulations around reserve requirements, transparency, and trading volume caps, causing some exchanges to reconsider their stablecoin offerings.
The second phase, scheduled to take effect from December 30, 2024, will extend these rules to crypto asset service providers, including exchanges, wallets, and other service companies.
The new regulation imposes stricter controls on so-called stablecoins, variously described as “asset reference tokens” or “electronic money tokens,” with a volume limit of just $200 million per day to be used for payments. It will be imposed.