Robinhood, the fintech giant, is reportedly exploring the possibility of launching its stablecoin, according to Bloomberg. This would position Robinhood alongside other major financial firms like PayPal, which launched a U.S. dollar-pegged stablecoin last year.
However, a Robinhood spokesperson clarified that while the idea isn’t being ruled out, there are currently “no imminent plans” to issue a stablecoin.
Robinhood already supports trading in several digital assets, including USDC, a stablecoin issued by Circle. Meanwhile, U.K.-based fintech company Revolut is also considering entering the stablecoin market, as reported earlier this month.
Revolut recently launched a retail wealth management app, expanding its crypto offerings to include other asset classes, though the company has not confirmed plans for a stablecoin.
Stablecoins have become a key focus for many financial institutions due to their profitability. Tether, the largest stablecoin issuer, reported $6.2 billion in net operating profits in 2023. PayPal’s PYUSD stablecoin, launched in August last year, has also gained traction, reaching a $700 million market cap.
Analysts expect the upcoming Markets in Crypto-Assets (MiCA) regulations in the European Union to boost stablecoin activity further. The new rules, set to take effect by the end of 2024, will introduce specific licensing requirements and reserve management regulations for stablecoin issuers.
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