(Reject Too Promotional) UK-Based Revolut Bank Launches Cryptocurrency Offerings to US Customers
British fintech company Revolut has just expanded its crypto services to the US. The London-based fintech company is a digital bank that offers mobile app-based current accounts as an alternative to traditional banks. It is commonly referred to as ‘tech super star’ as it offers a variety of digital banking services in a mobile app targeting young tech-savvy users.
In the US, a handful of well-known companies, including Square and Robinhood, already offer cryptocurrencies in their respective apps. Revolut is gradually catching up. Users in the US now can sell, buy, and hold Bitcoin and Ethereum from the Revolut app.
Revolut launched its business presence in the US in March 2020. Since then, US customers were only able to access the company’s fiat products through the app that is currently available on the Google Play Store and Apple App Store.
Making Crypto Trading Easy for Customers
Today, Revolut has partnered with Paxos New-York-based financial infrastructure provider to offer cryptocurrency services in the US.
By using Paxos’s recently launched plug-and-play brokerage service, Revolut can now provide crypto trading services in the US, without having to tackle the technological and regulatory hurdles, which crypto exchanges face on their own. Paxos would instead handle the regulatory issues, as the US trust firm acts as the crypto custodian for Revolut.
Nik Storonsky, Revolut CEO, said that in order for the company to expand its cryptocurrency offering to US customers, it had to find a trusted partner. Storonsky mentioned that they chose Paxos Crypto Brokerage service because their turn key solution is easy to integrate and fully compliant.
Through the Revolut mobile app, now US users are able to convert 28 different fiat currencies into Ethereum or Bitcoin with a push of the button. Customers can also set up real-time price alerts to get timely updates for their chosen digital assets. This helps users to keep on top of the value of their portfolio. Crypto sell and buy features are currently available in 49 out of 50 states, as Tennessee is still facing some regulatory issues.
Revolut also allows users to automatically round up their card payments to the nearest dollar and convert spare change into cryptocurrencies. However, US customers are currently unable to move their crypto funds to an external wallet.
Revolut has plans in place to expand the range of crypto assets made available through the app in the near future, with XRP, Bitcoin Cash, and Litecoin most likely to be added next as these are already available to EU users.
Cryptocurrency as A Diversification Tool
Many Bitcoin and crypto businesses have struggled to work with traditional banks. Regulatory uncertainty and crypto volatility have led banks to tread more cautiously when dealing with crypto businesses. Revolut’s offerings open a new door that bridges the gap between new digital currencies and traditional financial products while maintaining a high level of security. Increasing of banks, including JPMorgan, Swiss SEBA bank, and others are becoming friendly to the crypto industry.
Cryptocurrency is seen as an alternative to real money and regarded as a diversification tool in investment portfolios. Bitcoin has seen strong upticks in its price across current and past crises as the value of bonds and equities decline. Crypto assets continue attracting attention as financial markets face an uncertain period for the foreseeable future. As a result, many investors see cryptocurrencies as safe-haven assets.