Revolut Launches Euro Stablecoin in a Regulated Market
Revolut is launching a euro-backed stablecoin, entering a market that European regulation has inadvertently consolidated around a single American issuer. The neobank is issuing its own token while simultaneously helping the ECB test the public alternative for a digital euro through its pilot program.
Regulatory Context
The regulatory backdrop, set by MiCA, requires major stablecoin issuers to hold at least 60% of reserves in EU bank deposits. Tether declined authorization due to its model relying on US Treasuries, leaving Circle’s USDC and EURC as the only stablecoins authorized in Europe. This unintended outcome raised questions about European monetary sovereignty.
The European Commission initiated consultations in May 2026, with a review report expected in mid-2027 and revised rules potentially arriving in 2028. Revolut is aiming to capitalize on this gap in the market.
Revolut’s Preparation
Revolut has been preparing for this move for eighteen months, securing various licenses:
- Full UK banking license since March.
- EU banking license.
- MiCA authorization through Cyprus.
- Pending application for a US bank charter.
Banking licenses are crucial as they allow Revolut to hold reserves and issue its own regulated instrument on its balance sheet, providing a structural advantage over crypto-native issuers.
Commercial Logic and Future Plans
The commercial logic behind Revolut’s stablecoin lies in its existing crypto business, which generated $6bn in revenue in 2025, up from $4bn the previous year. The company plans to leverage its user base of 65 million across 38 countries and its upcoming IPO targeting a $200bn listing.
Revolut has already integrated Polygon for remittances, processing over $690mn. Distribution, not technology, has been the primary barrier to stablecoin adoption in Europe.