Fintech companies Robinhood and Revolut are reportedly exploring the possibility of launching their own stablecoins, a move that aligns with recent regulatory developments in Europe aimed at enhancing the stability and transparency of the cryptocurrency market. This potential entry into the stablecoin sector comes as the market is increasingly dominated by Tether's USDT, which has a market capitalization exceeding $119 billion. Tether has experienced significant growth, particularly during periods of economic uncertainty and volatility in the cryptocurrency market. The company has reported record profits, amounting to $5.2 billion in the first half of 2024, and has bolstered its reserves with a substantial amount of U.S. government bonds. This success has attracted the attention of other companies looking to enter the stablecoin market, although neither Robinhood nor Revolut has officially confirmed their intentions. The regulatory landscape is shifting, particularly with the implementation of the European Union's Markets in Crypto-Assets (MiCA) regulation, which is set to transform how stablecoins are created, sold, and traded. The first phase of MiCA regulations, which focused on reserve requirements and transaction volume caps, took effect on June 30, 2024. A second phase, scheduled to begin on December 30, 2024, will extend these regulations to crypto-asset service providers, including exchanges and wallets. Under the new regulations, stablecoins, referred to as "asset-referenced tokens" or "electronic money tokens," will face strict controls, including daily transaction volume limits of $200 million for payment purposes. These changes are expected to reshape the stablecoin market, prompting companies to reassess their offerings and strategies in light of the evolving regulatory environment.

Revolut, a fintech giant known for its crypto-friendly services, is reportedly working on launching its own stablecoin, aiming to expand its cryptocurrency offerings with a compliance-focused approach. This move would position Revolut alongside other stablecoin issuers like PayPal, Ripple, and BitGo as the sector continues to grow.

Robinhood Crypto has officially launched crypto transfers for its customers in Europe, a feature that has been highly anticipated in the region. This new capability allows users to deposit and withdraw over 20 different cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The introduction of crypto transfers aims to provide customers with enhanced flexibility and control over their digital assets. Johann Kerbrat, the Vice President and General Manager of Robinhood Crypto, emphasized that this launch simplifies the process of self-custody and engaging with decentralized finance (DeFi) for users. By enabling deposits and withdrawals, Robinhood is ensuring that customers maintain control over their cryptocurrencies while enjoying the same reliable and cost-effective experience that the platform is known for. To celebrate the launch, Robinhood Crypto is offering a limited-time promotion where customers in Europe can receive a 1% match on all crypto deposits. This reward is given in the same cryptocurrency that users deposit, subject to certain conditions and a cap on the total rewards. In addition to crypto transfers, Robinhood Crypto provides a range of other benefits. Customers can buy, sell, and hold over 35 cryptocurrencies at competitive rates, trade Bitcoin without incurring fees, and stake their Solana holdings to earn an estimated annual percentage yield (APY). There are also rewards for holding USD Coin (USDC) and for participating in educational programs about various cryptocurrencies. Security is a key focus for Robinhood Crypto, which ensures that users' digital assets are protected. The platform does not lend out customers' crypto or use it for leverage, and the majority of assets are stored in cold storage. Additionally, Robinhood offers crime insurance to safeguard against theft and cybersecurity breaches. Crypto transfers are now available to all eligible Robinhood Crypto customers in Europe, marking a significant step in the platform's expansion and commitment to providing comprehensive cryptocurrency services. For more information, users can visit Robinhood's dedicated crypto page.

Robinhood has announced Robinhood Crypto's worldwide expansion with the acquisition of crypto exchange Bitstamp. The U.K.-based exchange, one of the biggest in Europe, was sold for $200 million cash and is expected to close in the first half of 2025. Robinhood hopes this purchase will help them attract institutional customers.

Bloomberg's ‘Odd Lots' podcast this week covered stablecoins and their legitimate use globally as a payment and settlement platform. Stablecoins significantly improve legacy payment systems by offering cheap, near-instant, and light-regulation options for citizens of any country to send US dollar-backed digital assets. This marks one of the leading legitimate use cases of the highly speculative crypto industry.

Revolut has announced Revolut X, a dedicated cryptocurrency exchange catering to professional traders, making it the first banking institution to venture into this arena. With a user base of 40 million worldwide, Revolut aims to provide specialized trading experiences with lower transaction fees and access to digital assets like Bitcoin, Ethereum, and XRP, initially available on desktops for UK customers with plans for further expansion.

The U.K. government plans to introduce legislation for stablecoins, crypto staking, exchange, and custody by June or July this year.

Circle has announced that its stablecoins, USDC and EURC, are now compliant with the new EU stablecoin regulations (MiCA), making it the first global stablecoin issuer to meet these standards. Effective immediately, Circle is issuing these stablecoins directly to European customers from its French headquarters, making USDC the leading regulated digital dollar in the EU market and enabling high growth for Euro digital currencies.

Russia is considering legalizing stablecoins for international transactions to improve cross-border payments and mitigate the effects of ongoing sanctions. The Russian Central Bank is looking to regulate the transaction chain from entry to utilization. Its initiative would primarily target facilitating transactions with BRICS countries effectively integrating stablecoins into the national framework for international settlements.

Stablecoins are in the midst of becoming a massive industry. We may see thousands and potentially the first $1T stablecoin this decade. Even though fiat currency worldwide is experiencing inflation, the current fifth technical revolution means that there will be significant demand for niche products in the digital age. Stablecoins, many with different designs and developer composability, enable a big-bang moment leading to greater capture of the “broad money M2” market.

Enterprise blockchain company Ripple is creating a stablecoin pegged to the U.S. dollar. It will be native to the XRP Ledger and backed by short-term government treasuries, dollar deposits, and cash equivalents. The company hopes these “rock solid” assets and transparency will differentiate it from other stablecoin issuers. The stablecoin will be released later this year.

Tether CEO Paolo Ardoino is concerned about the EU's MiCA regulation for stablecoins. He asserts that the new requirements complicate stablecoin operations and increase their vulnerability and risk. In other news, Binance has announced plans to restrict "unauthorized" stablecoins in Europe to comply with MiCA, potentially affecting other exchanges and the accessibility of stablecoins like USDT.

Beginning on June 30, Binance will implement phased restrictions on "Unauthorized Stablecoins" for European Economic Area (EEA) users to comply with new MiCA stablecoin regulations. Binance will transition these users towards "Regulated Stablecoins" as they become available to ensure compliance and to minimize market disruption.

Ripple has started testing its stablecoin, Ripple USD (RLUSD), on both the XRP Ledger and Ethereum networks.

Robinhood Crypto has expanded its availability to all U.S. states, including Puerto Rico and the U.S. Virgin Islands, giving users across all territories the ability to trade 15 different crypto assets (e.g., BTC, ETH, etc.). This expansion was facilitated by regulatory adaptations (e.g., the Hawai'i-specific MTL license is no longer required) and additional licensing. Robinhood is now well positioned to be ahead or already ahead of U.S.-based competitors like Coinbase and Kraken in terms of geographical availability.

Robinhood has officially released its crypto wallet app for Android users worldwide. The move follows the company's successful debut of the wallet to iOS users last year. This comes as Robinhood saw a 10% YoY increase in its crypto business and an 89% uptick in its notional crypto trading volume.

Robinhood Crypto received a Wells Notice from the SEC, signaling a potential enforcement action for alleged securities violations. The notice is one of many that the SEC has recently issued to crypto firms (e.g., UniSwap & Consensys) challenging the classification of digital assets on their platforms.

The recent growth in the market capitalization of stablecoins is playing a significant role in providing liquidity that may support an increase in the price of Bitcoin and other major cryptocurrencies. According to CryptoQuant, this trend is crucial for the overall health of the crypto market. Julio Moreno, the Head of Research at CryptoQuant, emphasized that the inflow of stablecoins onto centralized exchanges has been notable, with USDT reserves reaching a record high of $22.5 billion in 2024. This influx of stablecoins is seen as a positive indicator for potential price growth in Bitcoin. The stablecoin market capitalization has hit a record high of $169 billion this year, and there is a strong correlation between the total market cap of stablecoins and rising Bitcoin prices. CryptoQuant's analysis indicates that the net inflow of stablecoins onto exchanges can serve as a predictive tool for Bitcoin's future price movements. Notably, there was a significant correlation observed in September between Bitcoin's price and the net inflows of stablecoins, particularly influencing the price increase towards the end of that month. In addition to the stablecoin dynamics, K33 Research has identified several bullish factors for Bitcoin as the market approaches the fourth quarter. These include a shift in the Federal Reserve's policy, efforts by China to enhance liquidity, and the recent approval of options trading on spot Bitcoin exchange-traded funds (ETFs). The report highlights that these developments are likely to generate momentum and drive further activity in the global markets. The approval of institutional options trading on BlackRock's spot Bitcoin ETF is particularly noted as a catalyst for optimism, with expectations of increased ETF inflows to meet the demand for options exposure. Overall, the combination of stablecoin market growth and favorable macroeconomic factors is creating a potentially bullish environment for Bitcoin and the broader cryptocurrency market as it heads into the final quarter of the year.

OKX, the world's fourth largest cryptocurrency exchange, is discontinuing its support for Tether trading pairs in the European Economic Area. This move comes ahead of the EU's implementation of the Markets in Crypto-Assets law, which restricts the use of certain stablecoins. OKX also plans to roll out new product offerings and Euro fiat onramps for EEA customers.

Brian Armstrong, co-founder & CEO of Coinbase, highlights the impact of decentralized, low-cost, fast payment solutions like stablecoins on global finance, noting the potential to revolutionize everyday transactions and payments by reducing costs and increasing efficiency, similar to the drastic shift seen in the messaging industry.

Bridge uses stablecoins to address global financial challenges caused by local currency limitations. It aims to simplify cross-border transactions, provide dollar access in unstable economies, and reduce costs associated with traditional money movement. Bridge has partnered with organizations to facilitate payouts, cross-border payments, and FX operations by offering stablecoin orchestration and issuance.

Stablecoin issuers and lending protocols have a symbiotic relationship that has been increasingly closer aligned. Stablecoin issuers like MakerDAO are lending protocols through their collateralization, and lending protocols like Aave are arguably a specific type of stablecoin issuer. The specialization of lending protocols has changed the market structure, and stablecoin lenders will become the primary users of lending platforms.

MUFG, SMBC, and Mizuho, the megabanks of Japan, are piloting a cross-border stablecoin transfer platform. The initiative, “Project Pax,” will use stablecoins issued by bank-backed Progmat and run by Datachain and TOKI. It will use SWIFT's existing APIs to settle on blockchain networks and be commercialized by 2025.

Robinhood received a Wells Notice from the SEC indicating the SEC will proceed with civil enforcement despite meeting with the SEC 16 times to discuss registering as a special purpose broker-dealer for crypto assets. Vlad Tenev, Robinhood's CEO, criticized the SEC's approach as "regulation by enforcement" and emphasized the importance of defending both Robinhood's position and customer's right to access crypto.

This past weekend, the total market cap of stablecoins (excluding algorithmic stablecoins) hit its all-time high at $168.1 billion. This surpassed the previous high from March 2022, and is a $40 billion increase from October 2022 lows. Analysts see this metric as a signal that there is growing confidence and interest in the market from institutional investors.

In the two weeks since its launch, €7.3 million EURC has been issued on Base, with adoption from various protocols and exchanges.

Coinbase is planning a tokenized money-market fund in a push towards the real-world asset sector.

Robinhood's first-quarter notional crypto trading volume was $36 billion, leading to revenue of $126 million.

Crypto.com is partnering with Standard Chartered to expand access to multiple fiat currencies including USD, euros, and Dirhams through a new retail services business managed from its regional hub in Dubai. Servicing 90 countries, this collaboration aligns with the UAE's economic diversification goals and marks a significant step in Crypto.com's global expansion strategy.

Robinhood Wallet has added support for Solana so users can self custody their tokens.