Revolut recently launched a cryptocurrency staking feature in its app in an effort to maintain its position as one of the largest neo-friendly banks in Europe. It is Revolut’s intention to take advantage of the growing interest in crypto among almost 25 million unique users by beginning with Cardano and Tezos, and eventually joining Ethereum and Polkadot as well.
In addition to providing traditional financial services for its users, its in-app platform also allows users to conduct basic crypto market research and buy tokens. They can also make a profit betting on the crypto markets for up to 11% a year.
There are currently two staking tokens that are offered by Revolut: Tezos ($XTZ) and Cardano ($ADA), which are both paid (or resettable) every 72 hours. The rate of APY (annual percentage yield) for Tezos is 4%, and the rate for Cardano is 2%.
It was founded in 2015 as a payment platform that offered cheaper rates than banks, and as one of the few online banks with an extensive geographical presence across Europe, Revolut is now one of the largest online banks in the world. According to the company’s financial report for 2021, it is worth $33 billion, making it one of the most valuable start-ups in the world.
More than 40 full and partial management licenses are in place, making its services available throughout the United States, Europe, Singapore, Australia, Japan and Switzerland. A few months ago, Revolut was granted a temporary license from the Financial Conduct Authority (FCA) to operate crypto-related services, paving the way for a wave of new crypto-related products to emerge.
In the wake of Britain’s tough decision to get rid of fraudsters and unscrupulous players in the crypto space, the announcement comes as no surprise. More than 260 of 300 applicants for a crypto operating license have been rejected by the government recently.
The digital currency minister in the UK, Chris Philip, announced in mid-2022 that the nation would want to become a crypto haven for the world. There is still a fierce battle between regulatory efforts and Crypto Asset Markets (MiCAs), a framework in Europe to regulate crypto players.
It has recently been reported that due to its caution in registering businesses, the country has become a hotbed of crypto scams. With the devastating bear losses of 2022, it is unclear whether Revolut’s crypto arm can be profitable in the future. According to Reuters, the expected loss is estimated to be around $240 million, more than double what the company initially expected.
Despite all of this, the company’s CEO, Nikolay Storonsky, assured that the bank is in good shape to continue its operations after receiving $800 million in Series E funding in 2023. He did not give a specific timeline for when its latest financial report will be released.