Revolut is predicted to gain a federal bank charter in the US in the coming months, with a launch next year. Reuters notes that Revolut will offer FDIC-insured accounts and the full stack of digital banking services. Add to this, services like stablecoins, and probably crypto trading, and Revolut is well positioned to be a “Super App” or everything platform – the current goal of all digital banking and brokerage platforms – and no expensive physical locations needed.
Revolut is already approved as a bank in both the UK and the EU.
While Revolut took a swing at becoming a bank in the US several years ago and then retreated, times have changed, as the Trump administration is all in on supporting Fintech innovation, including digital assets.
Meanwhile, some traditional banks grumble about the rising competition. The virtual fisticuffs swirling around the CLARITY Act display a traditional banking sector running in fear. Instead of upping their services and seeking greater competitiveness by relying on their brand and established user base, traditional banks want to use the legislative process to create a regulatory moat. Unfortunately, some policymakers have fallen for this ploy, or perhaps it is the significant donations to their campaigns.
Speaking with Reuters, Revolut US CEO Cetin Duransoy says US operations will be based in Stamford and will begin by focusing on businesses and individual users who recognize the benefits of a global banking operation that supports international transactions. Revolut already has a beachhead in the US, operating as a neobank with services provided by an already chartered bank. Users are said to number over one million.
Revolut, a Fintech that initially raised seed capital via securities crowdfunding, is now valued at around $75 billion. Republic Europe (formerly Seedrs) shows Revolut shares as having increased in value by around 12203.9%. This success highlights the potential for online capital formation, which continues to evolve, with some anticipating that both secondaries and primaries will soon be available on all platforms.
Revolut leadership has indicated an interest in going public, but this is probably a couple of years out. A growing business in the US should help increase its valuation. Of course, other digital banks could challenge the British invasion, but at least for now, traditional banks seem fearful of going head-to-head, opting not to up their game and instead relying on their experienced lobbyists.