Revolut Unveils Fee-Free USD to Stablecoin Conversions
Revolut has introduced a new feature allowing its 65 million global users to convert U.S. dollars to select stablecoins at a 1:1 rate. The offering eliminates fees and spreads on conversions up to $578,630 within a 30-day rolling period.
Conversion Applies to USDC and USDT
The feature supports conversions between U.S. dollars and major stablecoins, including Circle's USDC and Tether's USDT. Users can transact across six blockchains, such as Ethereum, Solana, and Tron. According to Leonid Bashlykov, Revolut's head of crypto product, these 1:1 conversions are designed to reduce friction for moving between fiat and crypto assets.
Platform Growth and New Regulation License
Revolut currently manages nearly $35 billion in customer assets, a 66% increase from 2023. The announcement follows the company's recent acquisition of a Markets in Crypto-Assets Regulation (MiCA) license from regulators in Cyprus. This license permits regulated crypto services for customers across 30 European Economic Area countries.
Business Use Cases Highlighted
Elbruz Y?lmaz, managing partner at Outrun, noted the benefit for small and medium-sized businesses. Many face challenges such as currency conversion losses and SWIFT fees when transacting internationally. The new Revolut solution could ease these burdens, especially in countries with economic instability.
Maintaining the 1:1 Rate
To offer the fixed rate, Revolut absorbs potential pricing spreads internally, as long as the stablecoins remain pegged to the U.S. dollar. The bank has supported crypto trading since 2017 and now offers over 200 cryptocurrencies along with pay-with-crypto options.
Broader Industry Context
The stablecoin market is attracting attention from major financial and remittance firms. Western Union announced plans to issue a dollar-backed token on the Solana blockchain. Zelle's parent company and MoneyGram are also rolling out services integrating stablecoins for faster payments. The international payments network SWIFT is developing infrastructure for transferring both stablecoins and tokenized assets.
Revolut's move reflects growing momentum for stablecoins as a bridge between traditional finance and digital assets.
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