Revolut Expands Operations in the U.S.
Revolut, a prominent British fintech firm, is set to expand its operations in the United States by launching a national bank in the coming year. This new venture will feature a range of services including FDIC-insured accounts and options for stablecoin transactions, marking a significant step in the company’s strategy to establish itself in the American financial sector.
According to Reuters, Cetin Duransoy, the recently appointed CEO of Revolut U.S., revealed that the platform will encompass high-yield investment accounts, checking accounts, stock trading, and cryptocurrency trading while supporting multi-currency deposits.
Banking Model and Charter Application
Importantly, Revolut will not establish traditional brick-and-mortar branches but will provide access to ATM networks instead. Earlier this March, the fintech filed for a national bank charter with the Office of the Comptroller of the Currency (OCC), a move that follows its decision to forgo an earlier plan to acquire a U.S. bank. The new bank will be headquartered in Stamford, Connecticut, with an additional office in New York.
Duransoy emphasized that the initial target audience will be both business and retail customers who require access to various currencies, including U.S. dollars, Indian rupees, and Latin American currencies.
Innovative Banking and Cryptocurrency Services
The company’s application for a bank charter arrives at a time when U.S. regulators appear to be becoming more receptive to applications from fintech and cryptocurrency firms. As part of its U.S. offerings, Revolut aims to blend traditional banking products with innovative crypto services. Its planned banking suite will include not only checking and investment accounts insured by the FDIC but also avenues for trading stablecoins and digital assets.
Notably, Kraken became the first fully cryptocurrency-focused firm to secure a master account with the Federal Reserve in March, indicating a shift towards acceptance of crypto entities within traditional banking frameworks.
Global Ambitions and Financial Performance
With a user base of around 75 million customers worldwide, Revolut currently has close to 1 million users in the U.S., many of whom first engaged with the app while traveling or residing in different international markets. This initiative reflects Revolut’s ongoing ambition to build what it dubs “the world’s first truly global bank,” an aspiration fortified by its recent success in obtaining a full banking license in the United Kingdom earlier this year.
In terms of financial performance, Revolut reported an impressive revenue of £4.5 billion (approximately $6 billion) last year and a net profit of £1.3 billion (around $1.75 billion). The company, privately held, boasts a valuation of $75 billion following its latest funding round. CEO Nik Storonsky has stated that the company does not plan to initiate an IPO before 2028.
In tandem with its banking ambitions, Revolut has also expanded its cryptocurrency initiatives, collaborating with Polygon to enhance its remittance services and participating in a stablecoin payments trial under the oversight of the Financial Conduct Authority.
