Explosive Revolut Plans: Fintech Giant Eyes Crypto Derivatives Push
Get ready for a potentially significant development in the world of fintech and crypto. Revolut, the global financial super app, appears to be setting its sights on a major expansion into the complex world of crypto derivatives. A recent job posting has shed light on ambitious plans that could leverage their massive user base.
Revolut’s Bold Move into Crypto Derivatives
A job listing for a “General Manager (Crypto Derivatives)” role strongly suggests that Revolut is preparing to build a crypto derivatives business from the ground up. The position, advertised for London, Barcelona, and Dubai, outlines responsibility for the entire process, from technical architecture and trading infrastructure to regulatory compliance and commercial strategy.
The goal? To create a leading global derivatives offering. Revolut aims to capitalize on its impressive 50 million-strong global customer base to achieve this. This strategic move aligns with Revolut’s ongoing commitment to expanding its crypto services.
Navigating the Landscape of UK Crypto Regulation
Revolut’s ambition to offer crypto derivatives faces different challenges depending on the market. Notably, the plans could run into difficulties with existing UK crypto regulation. The Financial Conduct Authority (FCA) banned the sale of crypto derivatives to retail consumers in the UK back in 2021, citing concerns about the risks to less experienced traders.
Daniel Arroche, a partner at D&A Partners, commented on the situation:
- Targeting the UK market would likely require the product to be restricted to professional clients to gain regulatory approval.
- Markets like the EU or Dubai, which the job listing mentions familiarity with their regulations, offer a more realistic path for broader access under proper licensing.
Despite the UK hurdle for retail derivatives, Revolut did secure a UK banking license in 2024, which allows them to expand traditional lending products.
Revolut’s Expanding Crypto Trading Footprint
Revolut has been involved in the crypto space since 2017, being one of the first major fintech companies to offer crypto trading. They have consistently expanded their offerings:
- In May 2024, they launched Revolut X, a dedicated desktop crypto exchange for experienced traders.
- Revolut X supports trading for 100 tokens with competitive fees.
- Plans are in place to bring Revolut X to mobile in 2025.
- The company recently announced a significant investment of over 1 billion euros ($1.1 billion) in France and an application for a local banking license there.
Crypto has become a significant revenue driver for Revolut. In 2024, the company’s pre-tax profit doubled to 1 billion British pounds ($1.3 billion), partly fueled by growth in crypto trading and customer acquisition.
Why This Matters for Fintech and Crypto
Revolut’s potential entry into crypto derivatives is a notable development for both the fintech sector and the broader crypto market. It signals increasing institutional interest and the potential for wider adoption of more complex crypto products, albeit with regulatory considerations varying by region.
The move highlights:
- Revolut’s confidence in the long-term potential of the crypto market.
- The strategic importance of diversifying product offerings to capture different segments of their large user base.
- The ongoing challenge of navigating diverse and evolving global UK crypto regulation landscapes.
Summary
Revolut appears poised for a significant push into the crypto derivatives market, leveraging its vast customer base and existing crypto infrastructure. While facing potential regulatory hurdles in the UK for retail offerings, the company seems to be exploring opportunities in other jurisdictions like the EU and Dubai. This expansion underscores Revolut’s deepening commitment to crypto and its ambition to become a major player in the evolving digital asset space, further blurring the lines between traditional finance and crypto trading.
