In a significant move forward in the digital assets space, UK banking app Revolut has unveiled Revolut X, a crypto trading platform dedicated to UK retail customers.
According to a Fortune magazine reportThe launch of the new platform demonstrates Revolut’s commitment to the crypto industry and positions the company to compete with major players like Coinbase and Binance.
Revolut continues its crypto campaign with a new platform
Interestingly, with a user base of over 40 million, Revolut is one of the largest fintech companies in the world. The new platform would allow traders to buy and sell over 100 tokens, with costs ranging from zero to 0.09%.
This announcement follows the launch of Revolut Ramp in March. Through a partnership with MetaMask, Revolut Ramp allows investors to purchase crypto directly in their wallet.
Leonid Bashlykov, head of crypto exchange products at Revolut, highlighted the company’s goal of enabling customers to grow their wealth, whether in fiat currency or crypto.
The profitability of the UK-based fintech company has been closely associated with the crypto market. During the previous bull run, the company reached profitability for the first time in 2021.. The high margins of cryptocurrency trading are expected to contribute significantly to Revolut’s future profitability.
Contrasted decline in the American market
Revolut’s foray into the UK crypto market coincides with the recent regulations introduced by the Financial Conduct Authority (FCA), the country’s regulatory agency.
These regulations include “mandatory 24-hour cooling off periods” that require investors to wait a full day before making crypto trades. While these obstacles present challenges for smaller businesses or offshore companies, they are manageable for established players like Revolut, according to Boaz Sobrado, a London-based fintech analyst. Sobrado explained:
These barriers to entry are insurmountable for small businesses or offshore companies, but achievable for companies like Revolut and Kraken. This means there are fewer competitors and therefore a greater opportunity.
The company’s renewed focus on crypto also reflects the positive outlook for the market as a whole. Since approval Out of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States on January 11, which have accumulated more than $53 billion in assets, the price of Bitcoin increased by more than 40%.
Moreover, the entry of financial giants like black rock and Fidelity in the crypto space has accelerated market growth by expanding access to a broader pool of investors compared to previous rounds.
It is worth noting that the launch of cryptocurrency exchange services in the UK contrasts with the company’s withdrawal from the US market.
In August 2023, Revolut shut down its crypto commercial services for U.S. customers, citing an unclear regulatory landscape and uncertain market conditions. However, this decision only affected a small portion, around 1%, of its user base.
Featured image from Shutterstock, chart from TradingView.com
