London-based fintech firm Revolut has been granted a banking license in the United Kingdom after navigating a complex three-year approval journey.
The UK’s Prudential Regulation Authority, albeit with certain constraints, greenlit the license, enabling Revolut to gradually expand its banking activities before a full-fledged rollout, the firm said in a Thursday blog post.
“We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers,” Revolut CEO Nik Storonsky said.
Revolut Continues to See Growth
Established in 2015, Revolut has experienced exponential growth, amassing nine million registered users in the UK and a staggering 45 million globally, with operations spanning 35 countries.
The fintech giant garnered a valuation of $33 billion in a 2021 fundraising drive and is currently exploring a share sale estimated at $500 million, potentially propelling its total valuation to around $40 billion, positioning it as Europe’s premier startup, as per PitchBook assessments.
In addition to its banking strides, Revolut has been actively expanding its presence in the cryptocurrency realm.
The introduction of “Revolut X,” a specialized crypto exchange for its UK retail clientele, underscores its commitment to innovative financial services.
Earlier integrations with MetaMask for direct in-app crypto purchases and collaborations with projects like Solana to promote memecoins highlight Revolut’s foray into the evolving crypto landscape.
However, in August 2023, Revolut announced plans to halt its crypto services for US customers.
The digital bank cited the market uncertainty and changes to the local regulatory landscape in the country for suspending crypto services.
At the time, the England-based fintech firm said it would suspend US users’ ability to buy cryptocurrencies via its app.
Revolut Launches Crypto Trading Platform for UK Retail
In May, Revolut introduced its standalone crypto trading platform called Revolut X, catering to UK retail customers.
The company designed the new platform to compete with leading crypto exchanges by providing easy on/off-ramping and low fees.
Although initially targeted at professional traders, Revolut X is accessible on desktop for all UK users with a Revolut retail account starting today.
Traders on Revolut X can engage in more than 100 token trades with fixed fees of 0% for makers and 0.09% for takers, irrespective of trading volume.
Revolut’s introduction of Revolut X came after the launch of Revolut Ramp in March, which enables users to purchase crypto directly in their Web3 wallets through a partnership with MetaMask developer Consensys.
In December, Revolut announced the suspension of crypto trading for its UK business customers, citing the need to adapt to new requirements set by the Financial Conduct Authority (FCA) in October.
The FCA’s crypto advertising rules, including a cooling-off period for first-time investors, aimed to enhance transparency and accuracy in the marketing of crypto products.
However, several firms, including PayPal, encountered difficulties complying with these regulations.
Additionally, in August, Revolut halted its crypto services in the United States, citing regulatory uncertainties and challenges.
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