Financial technology company Robinhood has poured cold water on rumors that it is planning to launch its own stablecoin. In a statement to Decrypt, Robinhood Crypto’s Vice President and General Manager, Johann Kerbrat, confirmed that there are no “immediate plans” for such a venture.
Bloomberg Had Claimed Robinhood and Revolut Were Exploring Launching a Stablecoin
Kerbrat’s remarks came in response to a Bloomberg report suggesting that both Robinhood and Revolut were exploring the possibility of entering the stablecoin market. While Revolut declined to comment on the matter, a source familiar with the company hinted that a stablecoin was being “explored” but that specific details, including a timeline, had not yet been finalized.
The stablecoin market is currently dominated by Tether (USDT), which holds a market capitalization of $119 billion. Any new entrant would face significant challenges in competing with such a well-established player.
Robinhood has already made inroads into the stablecoin space by listing Circle’s USD Coin (USDC), the second-largest stablecoin. Revolut, on the other hand, has expanded its crypto offerings to include staking services for tokens like Ethereum.
Despite the potential allure of the stablecoin market, both companies seem hesitant to take the plunge. PayPal’s PYUSD, for instance, has struggled to gain traction, with a supply of around $710 million. Other financial giants, such as JPMorgan Chase, Meta, and Binance, have also encountered difficulties in establishing their presence in this space.
