Robinhood Eyes Stablecoin Launch Amid Growing Crypto Interest from Traditional Finance
Robinhood, the fintech powerhouse, is reportedly considering the launch of its own stablecoin, as reported by Bloomberg.
This move would position Robinhood alongside other traditional finance firms like PayPal, which introduced a U.S. dollar-pegged stablecoin last summer.
While the possibility of a stablecoin is on the table, a representative from Robinhood clarified that there are “no imminent plans” for its issuance. Currently, the platform supports various digital assets, including USDC, a stablecoin provided by Circle.
In a related development, U.K.-based Revolut is also exploring a potential stablecoin, as noted by CoinDesk on September 18. Recently, the neo-bank launched a retail wealth management app that allows users to trade cryptocurrencies alongside other asset classes. A Revolut spokesperson confirmed the company’s intention to expand its cryptocurrency offerings, but did not specifically address stablecoin plans.
READ MORE:Robinhood Agrees to $3.9 Million Settlement Over Crypto Practices
Financial institutions are increasingly focused on stablecoins, with Tether, the largest stablecoin issuer, reporting net operating profits of $6.2 billion in 2023, primarily from interest on assets backing USDT. Additionally, PayPal’s PYUSD stablecoin, launched in August 2023, has reached a market cap of $700 million, making it the fourth-largest stablecoin currently available.
Analysts suggest that upcoming MiCA regulations in the European Union could further stimulate stablecoin activities in the region. Set to be fully implemented by the end of 2024, these regulations will establish clear guidelines for stablecoin issuers, including licensing requirements and stringent rules for reserve management.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
