Revolut Explores Dual Listing, $75 Billion Valuation, and Stablecoin Issuance

Executive Summary

Revolut, a fintech company, is considering a dual public listing in London and New York while exploring the issuance of its own stablecoin, following a recent secondary share sale valuing the firm at $75 billion. This strategic expansion reflects a deepening integration into digital assets.

The Event in Detail

Fintech firm Revolut is exploring a dual public listing on the London and New York stock exchanges, a move that could potentially make it the first company to float simultaneously in New York while also entering the FTSE 100 index. This consideration follows a secondary share sale that valued the company at $75 billion, a 66% increase from its previous $40 billion valuation. The share sale, initiated on September 1, allowed employees to divest up to 20% of their holdings at $1,381.06 per share.

Concurrently, Revolut is advancing its crypto strategy, reportedly in discussions with crypto-native firms for the development of a proprietary stablecoin. The company launched Revolut X, a centralized crypto exchange, in 2024 across the European Union and is pursuing a U.S. bank charter. Revolut reported $4 billion in revenue in 2024 and $1 billion in profit, serving over 50 million retail and 500,000 business customers globally.

Financial Mechanics

The $75 billion valuation for Revolut was established through a secondary share sale, facilitating liquidity for employees who were permitted to sell up to 20% of their equity at a price of $1,381.06 per share. This valuation represents a substantial increase from the company's prior $40 billion valuation. The potential issuance of a fiat-pegged stablecoin would involve backing the digital asset 1:1 with liquid, low-risk reserves such as short-term government bonds or bank deposits. These reserves are mandated to be held in a statutory trust, segregated from the issuer's own funds, to ensure consumer asset protection. Furthermore, Revolut is planning to enter the crypto derivatives market, evidenced by a job listing for a "General Manager (Crypto Derivatives)." The firm's crypto division has become a key revenue driver, contributing to its $1 billion pre-tax profit in 2024.

Business Strategy & Market Positioning

Revolut's strategy combines traditional financial services like payments and stock trading with a rapidly expanding crypto arm. Its $75 billion valuation surpasses the market capitalization of established UK banks such as Barclays, highlighting the market's appeal for neobanks. The company’s continued global expansion includes rolling out services like Revolut X and pursuing a U.S. bank charter to enable lending across the country. Founder Nik Storonsky's shifting perspective on a London listing, previously skeptical due to stamp duty, now reflects recent UK regulatory reforms that allow swift FTSE 100 entry. These reforms, alongside political support for London as a financial hub, have influenced Revolut's consideration of a dual listing, with Storonsky noting he would consider London if it offered a "better product." The company has also committed to a £3 billion investment in the UK and the creation of 1,000 jobs.

Market Implications

Revolut's pursuit of a dual listing and its deepened integration into the crypto space, including stablecoin development and crypto derivatives, could establish a significant precedent for major fintech firms. This strategic trajectory may lead to increased mainstream adoption of digital assets and influence global regulatory frameworks for hybrid financial entities. The exploration of a stablecoin positions Revolut to reshape cross-border payments, aligning with the UK's Financial Conduct Authority (FCA) draft rules for stablecoin issuance, which propose formal regulatory frameworks with consumer protections. The company's entry into the crypto derivatives market, despite FCA bans for retail investors in the UK, suggests initial targeting of more permissive jurisdictions such as the European Union or Dubai, with future UK offerings potentially restricted to institutional clients. This demonstrates a broader trend of financial institutions adapting to evolving digital asset regulations and market demands.

Broader Context

The growth of Revolut mirrors the rapid expansion of neobanks globally, which have collectively amassed hundreds of millions of customers by offering mobile-first banking solutions. Competitors like Brazil's Nubank and China's WeBank also demonstrate substantial scale. Revolut's move into stablecoins and crypto derivatives occurs within an evolving global regulatory landscape, with the FCA's recent proposals for stablecoin regulation in the UK aiming for consumer protections akin to traditional finance. This contrasts with the cautious approach of some crypto firms like Kraken, which has publicly stated it awaits regulatory clarity before pursuing a public offering. Revolut's actions underscore a trend where established fintechs are actively navigating and shaping the future of integrated traditional finance and digital assets.