Revolut is introducing a euro stablecoin into a market that MiCA has assigned to an American company.

      Revolut is set to introduce a euro-backed stablecoin, entering a sector that European regulations have inadvertently consolidated around a single American provider over the past two years. The neobank is also among the 36 companies selected by the ECB for its digital euro pilot, indicating that it is concurrently developing a private euro token while assisting in testing the public alternative.

      The regulatory environment adds an interesting layer to this development. Under MiCA, significant stablecoin issuers are mandated to maintain at least 60% of their reserves in EU bank deposits, a regulation intended to ensure euro stablecoins remain anchored in Europe. Tether has opted against seeking authorization since its model relies on US Treasuries, which leaves Circle’s USDC and EURC as the sole stablecoins with e-money token authorization in the European regulator's register. Consequently, the regulation aimed at safeguarding European monetary sovereignty has inadvertently handed the European market to a US-regulated company with reserves primarily in US Treasury instruments.

      In May, the European Commission initiated consultations to address this issue, with a review report expected by mid-2027 and updated regulations realistically arriving in 2028. This period presents an opportunity for Revolut. Earlier this year, Circle’s EURC surpassed €400 million in circulation, which is a significant lead in a small market and represents modest potential relative to what a euro stablecoin could achieve.

      Revolut has been working on obtaining the necessary licenses for the past eighteen months. It currently possesses a full UK banking license obtained in March, an EU banking license, a MiCA authorization acquired through Cyprus, and a pending application for a US bank charter. The importance of banking licenses may be understated here; having one allows Revolut to retain reserves and issue a regulated instrument from its own balance sheet rather than relying on third-party settlement infrastructure, providing a structural advantage over crypto-native issuers.

      In February, the FCA selected Revolut as one of four firms from twenty applicants for its stablecoin regulatory sandbox, where it has been developing a pound-denominated token backed one-to-one by sterling reserves. As this effort has progressed, the Bank of England has softened its stance, replacing suggested per-person holding limits with a £40 billion issuance cap per systemic stablecoin and reducing the unremunerated central bank reserve requirement to 30%, allowing the remainder to be in short-term government debt.

      Revolut is also considering an IPO, having launched a private banking division while aiming for a $200 billion listing. Possessing a currency that it issues itself, rather than just distributing someone else’s, is an asset that could underwrite such a valuation.

      The financial rationale is evident in Revolut’s existing cryptocurrency operations rather than any overarching theory about money. The company reported $6 billion in revenue for 2025, a rise from $4 billion, with its crypto wealth services expanding by 298%, and it has facilitated over $690 million in remittances through a Polygon integration.

      Additionally, Revolut boasts 65 million users across 38 countries, an asset that no crypto issuer can easily replicate. In Europe, distribution has been the primary constraint on stablecoin adoption, not the underlying technology, and a token integrated into an app that users already utilize for receiving their salaries starts from a more favorable position.

      However, there’s a tension in pursuing this while participating in the ECB’s pilot. The central bank has claimed that the dominance of dollar stablecoins undermines its ability to influence rates, and a privately issued euro token does not evidently address that concern. Nevertheless, Revolut seems to be betting on the success of both initiatives, preferring to be involved in both realms.

      The specific details have yet to be independently verified. As of now, the token's name, the blockchain networks it will utilize, the location of reserves, and the priority markets for its launch have not been determined outside the initial report, and these specifics will dictate whether it competes with EURC or simply serves as an accompaniment.