According to Bloomberg sources, Robinhood is considering launching its own stablecoin. With this, the fintech company would follow in the footsteps of other major players, such as PayPal, which introduced a US dollar-based stablecoin last year.
However, a Robinhood spokesperson emphasizes that there are “no concrete plans” for an immediate launch. Yet something seems to be moving behind the scenes within the fintech sector.
Increasing interest from fintech companies in stablecoins
Bloomberg also reports that British fintech company Revolut may be planning to launch a stablecoin. Last week, Revolut introduced an asset management app that allows users to trade crypto, among other things. While there was no official announcement about a stablecoin, a spokesperson indicated that the company plans to further expand its crypto offering.
Stablecoins are gaining importance in the financial sector
Stablecoins are playing an increasingly important role within the financial sector and act as a bridge between the crypto world and the traditional financial markets. Tether, the world’s largest stablecoin issuer, posted an impressive profit of $6.2 billion in 2023, mainly due to interest income on the assets backing USDT.
PayPal and the rise of new stablecoins
Payment service PayPal also entered the stablecoin market in August 2023 with the launch of PYUSD. This stablecoin has now reached a market capitalization of $700 million, making it the fourth largest stablecoin. It is expected that other fintech companies will soon follow suit with their own stablecoin initiatives.
However, Tether remains the dominant player with a market cap of almost $120 billion, while Circle’s USDC comes in second with over $38 billion.
MiCA regulations can stimulate stable growth
Analysts predict that the new MiCA regulations in the European Union, which will come into effect at the end of 2024, could contribute to the growth of stablecoins and healthy competition in the region. This legislation imposes specific requirements on stablecoin issuers, including strict rules for licensing and reserve management. This could promote the emergence of new stablecoins and potentially reduce USDT’s monopoly.
Source: https://newsbit.nl/robinhood-overweegt-mogelijk-eigen-stablecoin-maar-houdt-kaarten-nog-tegen-de-borst/
