Digital bank Revolut was involved in a number of key activities this week, spanning partnerships, internal disputes, and strategic expansions in financial services. The Fintech company had reportedly engaged in recent preliminary discussions with Blackstone, the global asset manager, about a potential collaboration in wealth management. The talks, held earlier this week, explore ways for Revolut’s upcoming private banking clients to (possibly) invest in Blackstone’s funds.
This move appears to mainly target high-net-worth individuals, allowing access to alternative investments through Revolut’s platform. For Blackstone, it represents an opportunity to reach younger affluent users via digital channels. The negotiations remain in early stages, with no assurance of a final agreement, and both parties have declined to comment.
Separately, digital bank Revolut is facing tensions with some of its former employees regarding taxation on equity compensation. Ex-staff members claim the company provided “misleading” information about tax implications when they exercised or sold share awards, leading to unexpectedly high tax bills.
As first reported this past week by the FT, this has now sparked disputes, with affected individuals seeking more clarity or compensation. In a somewhat related development, Revolut extended an offer to repurchase shares from these former workers at a 30% discount to its latest $75 billion valuation from a recent funding round.
This implies an effective valuation of around $52.5 billion for the buyback, providing liquidity but at a considerably reduced price. The initiative follows internal communications and aims to address ongoing concerns, though it has not resolved all grievances.
Revolut also collaborated recently with the International Organization for Migration (IOM), a UN agency, in order to enhance support for migrants through online donations.
Announced this week, the partnership integrates IOM as a donation option in Revolut’s app, enabling users to contribute directly from their accounts.
All proceeds go toward migration aid programs, with no fees deducted.
This expands IOM’s fundraising reach to Revolut’s users, facilitating transfers for humanitarian efforts. IOM Director General Amy Pope has highlighted the initiative during meetings with Revolut executives, emphasizing its role in aiding displaced populations.
Additionally, the Fintech challenger has partnered with Trust Wallet, which is a cryptocurrency storage provider, to enable immediate digital asset purchases in the European Union.
The integration allows users to buy cryptocurrencies like Bitcoin, Ether, Solana, USDC, and USDT using Revolut balances, with funds transferred straight to self-custodial wallets in Trust Wallet. This setup emphasizes user control over private keys, avoiding reliance on centralized exchanges.
The service offers zero fees for payments from Revolut accounts and targets EEA residents, streamlining the process for around 65 million potential users.