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Revolut, the global neo-bank and financial technology company, is set to launch its U.S. dollar-backed stablecoin. According to growing reports on X, the move is part of its broader strategy to expand its cryptocurrency offerings. Likewise, a spokesperson for Revolut confirmed that the move is aimed at catering to the growing demand for stable digital assets. 

Revolut to offer trusted option for users 

A key aspect of Revolut’s strategy is its commitment to a "compliance-first" approach. As it rolls out its stablecoin, it aims to meet stringent regulatory requirements across various jurisdictions. This ensures it operates as a secure and trusted option for users, attracting a broader range of customers. 

The London-headquartered company believes its new product will attract more liquidity while generating more use cases. As of today, Revolut has not announced a specific launch date for the potential stablecoin. However, before it can be available to consumers, the dollar-backed coin will need to be approved by regulators.

Notably, the stablecoin market has reached a significant milestone, soaring to a two-year high, with market capitalization topping $164 billion. This impressive growth has been driven primarily by Tether (USDT). Though USDT leads the pack, other stablecoins like USDC share market dominance.

Stablecoin ecosystem now getting crowded

In May, PayPal’s PYUSD stablecoin was rolled out on the Solana blockchain. The announcement of Solana's availability comes nine months after the PayPal stablecoin's initial launch. The payment giant claimed that it chose Solana due to its cost-effectiveness. 

Moreover, the blockchain enables unique features that will cement the stablecoin’s position by improving its utility. These features include confidential transactions, transfer hooks and fields. Meanwhile, San Francisco-headquartered company Ripple Labs Inc. is inching closer to launching its stablecoin, RLUSD.

Ripple teases the stablecoin project as a tool for instant cross-border money transfers and payment services. The stablecoin will initially be issued on XRP Ledger and Ethereum.