Robinhood is considering launching its own stablecoin, says Bloomberg

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Robinhood is considering launching its own stablecoin, says Bloomberg
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Robinhood, one of the largest fintechs in the world, is evaluating the possibility of launching its own stablecoin, according to information released by Bloomberg. According to the report, this move would see the company follow in the footsteps of other financial giants that have already entered the lucrative stablecoins market. An example of this is PayPal, which launched its token pegged to the US dollar last year, PYUSD.

However, despite speculation, a Robinhood spokesperson stated that there are “no imminent plans” to launch a stablecoin. Currently, the platform already allows trading of several digital assets, including the USDC stablecoin, issued by Circle.

In addition to Robinhood, another company that is considering expanding its operations in the stablecoins market is the British fintech Revolut. According to information released on September 18, Revolut is evaluating the possibility of launching its own stablecoin.

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While the company has not directly confirmed this plan, a spokesperson stated that Revolut intends to “further expand” its cryptocurrency offering.

Like Robinhood, Revolut is also considering launching a stablecoin

Stablecoins have become an increasing focus for traditional financial institutions. Tether, the world’s largest stablecoin issuer, USDT, reported an operating profit of $6.2 billion in 2023, much of it coming from interest on the assets backing its USDT token.

Meanwhile, PayPal, which launched its PYUSD stablecoin in August 2023, has reached a market cap of $700 million, positioning itself as the fourth-largest stablecoin on the market.

Analysts also believe that the new MiCA (Regulation of Markets in Cryptoassets) guidelines in the European Union will further boost the growth of stablecoins in the region. These regulations are expected to come into force by the end of 2024.

MiCA establishes specific rules for stablecoin issuers, such as licensing requirements and the strict management of the reserves that back these tokens.

With increased interest in this market from large financial companies like Robinhood, the stablecoin sector is expected to continue growing, offering new opportunities for both issuers and investors.