Robinhood is mulling a potential stablecoin launch: Bloomberg

Fintech giant Robinhood is reportedly mulling a potential stablecoin, according to Bloomberg . The launch would make it the latest traditional finance firm to move into the lucrative stablecoin business, following the likes of PayPal, which debuted a U.S. dollar-denominated token last summer.

However, without disputing the possibility, a Robinhood spokesperson said there are “no imminent plans” to issue a stablecoin. Robinhood currently offers trading in various digital assets on its platform, including the USDC stablecoin issued by Circle.

Bloomberg also said U.K.-based Revolut is considering a stablecoin rollout, which CoinDesk reported on Sept. 18. Last week, the crypto-friendly neo-ban unveiled a retail wealth management app that will enable the trading of cryptocurrencies alongside other asset classes.

A spokesperson for Revolut stated the company plans to “further grow” its crypto offerings, without directly mentioning a stablecoin.

Stablecoins are an emerging area of focus for financial institutions. The largest stablecoin issuer, Tether, booked $6.2 billion in net operating profits in 2023, largely from interest earned on USDT's backing assets. Meanwhile, after launching in August of last year, PayPal’s PYUSD stablecoin has grown to a $700 million market cap, making it the fourth-largest stablecoin on the market.

Some analysts think the incoming MiCA guidelines in the European Union will boost stablecoin activity in the region. The regulations, set to take full effect at the end of 2024, carve out specific rules for stablecoin issuers including licensing agreements and strict rules for managing reserve holdings.