Revolut intends to allow Nik Storonsky to borrow $250 million using his own shares as collateral.

      Revolut has requested its shareholders' consent for Nik Storonsky to borrow up to $250 million against his stake in the company, which is five times the amount currently allowed by existing rules. This request was made to investors last week as part of a governance initiative known as Project Shasta.

      Storonsky holds approximately 29% of Europe's most valuable private tech firm, which achieved a valuation of $115 billion during an employee secondary share sale last month, according to sources familiar with the situation. This gives his holdings a paper value of around $33 billion, none of which he can access until he either sells shares or borrows against them.

      He has not been able to utilize borrowing on a substantial scale. Currently, Revolut’s articles of association limit the CEO’s borrowing against his shares to $50 million, a figure set when the company’s worth was significantly lower.

      The specifics of this cap are notably detailed. Any employee owning more than 20% of ordinary shares can pledge 10% of their holdings as loan security without needing board approval. With the support of a majority of directors, they may pledge an additional 5%. Storonsky is the sole individual at Revolut who meets the 20% ownership requirement.

      The proposed amendments, outlined in documents examined by the Financial Times, would raise the borrowing limit to $250 million, eliminate restrictions on the proportion of shares that can be pledged, and expand the types of shares that can serve as collateral, while also removing the need for board approval for larger pledges.

      Revolut stated that it regularly updates its articles to ensure that its “corporate governance and administrative provisions reflect the current scale and valuation of the business.” The current revision, the company explained, addresses various technical aspects, including adjusting the pledge limit to replace an outdated figure with a defined cap, while any borrowing under this cap will still comply with regulatory requirements.

      An individual familiar with the revisions bluntly criticized the previous limit, stating that it was set “years ago when Revolut was a fraction of its current size,” while describing $250 million as “an exceptionally low borrowing limit” given the size of his stake. This person noted that the proposed articles “do not reflect any borrowing that has occurred or any plans to borrow.”

      Even the new limit is not absolute. Storonsky could potentially borrow more than $250 million with the board's approval and consent from 75% of shareholders, a significant hurdle in most businesses but a more attainable threshold for him, given his near one-third equity stake.

      The company backing this initiative has been growing rapidly enough to render the old thresholds outdated. Founded in London in 2015, Revolut now serves 75 million customers, and its 2025 financial statements show a 57% increase in pre-tax profits to £1.7 billion on revenues of £4.5 billion.

      An initial public offering (IPO) remains a ways off, with executives indicating that it will not occur before 2028 and is expected to be in the US, with the company targeting a $200 billion valuation at that time.

      Storonsky's incentive package is linked to this valuation target. Achieving a $200 billion valuation would elevate his stake to approximately 40%, valued at around $80 billion, and he is also engaged in discussions regarding a new award tied to a $500 billion valuation.

      The liquidity issue is significant. Storonsky is currently facing a lawsuit from a broker over fees related to a €350 million superyacht, underscoring the reality that much of his wealth is represented as entries in a shareholder registry, rather than liquid assets.

      Such share-backed loans are common among founders who prefer not to sell shares, and they can also create vulnerabilities, as demonstrated by several American tech fortunes under duress during market downturns. Pledging is a gamble that share values will not drop enough to necessitate a margin call.

      In the case of Revolut, the collateral is not publicly traded, which presents both advantages and disadvantages: while there is no daily market price that might trigger concern, lenders also lack the regular price confirmation that can provide reassurance.

      Shareholders have yet to vote on these proposed changes, and Revolut has not provided a timeline for this decision. In the meantime, the company has effectively set a benchmark for an outdated threshold.