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      Revolut Initiates Development of GBP-Pegged Stablecoin

      Revolut, the London-based fintech company with over 70 million customers, has announced its plans to launch a stablecoin pegged to the British pound. This initiative marks a significant shift for the company as it transitions from merely facilitating cryptocurrency transactions to becoming a digital currency issuer. The GBP-pegged token is currently being tested within the UK Financial Conduct Authority's regulatory sandbox, with testing beginning in the first quarter of this year.

      The stablecoin will be backed 1:1 by reserves held in pounds and is designed to support various functions including issuance, payments, wholesale settlement, and cryptocurrency trading. This comprehensive approach aims to cover all essential use cases for digital payments. Revolut's selection for the FCA's stablecoin sandbox on February 25, 2026, underscores its commitment to developing this new financial product.

      In addition to its stablecoin efforts, Revolut has already been processing remittances using existing stablecoins like USDC and USDT, with nearly $700 million in volume since late 2024. The company has focused on key remittance corridors, such as the UK-India route, and aims to enhance its offerings by eliminating intermediaries through its own stablecoin, thereby reducing costs and improving transfer speeds.

      The regulatory environment is evolving in favor of stablecoin issuance, with the Bank of England revising its rules to allow for a £40 billion issuance cap and greater flexibility in reserve management. Revolut also holds authorizations under the EU’s MiCA framework, positioning it for potential expansion into European markets. As the company prepares for a 2027 launch of Revolut Bank, N.A. in the US, its stablecoin development aligns with its broader strategy to integrate digital currency capabilities into its banking operations.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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